The key to any successful business is constant improvement. Without it, your company would stay stagnant, or worse – it would regress. However, it may be difficult for us to figure out how to make improvements, especially since a company can be a lot to handle. Here are some ways you can improve your plastic manufacturing facility.
Maintain and Update Your Standards
If you accurately want to quote on jobs, make price lists, track costs, and establish production costs, you need to set standards. You need to benchmark your products with standard overhead, machine times (keep in mind it varies from each machine), and labor and material costs. You need to review your last established standards frequently. Some people think that reviews consume a lot of time. However, they are a great way to maintain control and discipline.
You should invest effort and money into checking if your production times to see if they improved or deteriorated. Another thing you should look for is whether your scrap ratios and setup times have shifted. Once you regularly review standards and products, you will minimize or avoid repeating costly mistakes.
Recycle
You must recycle and keep your business more eco-friendly. Remember, every piece of plastic that was ever made is still on our planet. Over 300 million tons of plastic are produced every year, and about half of that is single-use plastic – while it may be used for less than a minute, it stays on our planet for centuries. All companies, both big and small, should put effort into conserving our environment, especially the plastic manufacturing industry. Therefore, you should make it a point to start recycling more.
Recycling can do more than help conserve the planet because it can help you save money and not waste materials. Think about what you can do with your plastic manufacturing company – you can recycle materials to make new products. You can create a recycling program to stop buying new resources and reuse materials instead. Plus, many customers appreciate doing business with companies that focus on being eco-friendly, so it offers an excellent impact on your company’s image.
Inventory and Equipment
You need to focus on proper equipment management if you want your business to improve. Many companies can struggle with equipment inventory, but equipment value can affect your sale price calculations; therefore, it would be worth it to maintain. The plastic sector needs specialized welding and molding equipment, and it should be replaced around every 15 years at maximum and be well maintained throughout the years. For instance, an injection mold manufacturer would have to schedule regular maintenance to make sure they avoid downtime. Remember, time is money.
You should also manage the materials inventory closely. Material inventory is a commodity. It would be best if you bought materials that you would use immediately, create good supplier relations, and control costs. The management of your materials inventory can directly reflect in the cash flow. Therefore, you should make sure you keep up with it.
If you notice that your company is stagnant, you have to find ways to be consistent and improve. You can build an efficient and profitable business when you follow the tips above.
