Manufacturing Employees perform on average at only 40-60% of their capacity because most companies do not know the 5 keys to measuring profitable productivity
Source: https://www.universalclass.com
Manufacturing companies often struggle to compete in today’s market because the majority of their sales prices are fixed based upon what the markets will pay, while their internal costs continue to fluctuate in labor and daily expenses of doing business. This creates a pressure cooker internally that if not properly addressed, can greatly restrict the ability of the business to grow, capitalize on other opportunities, and in some dire cases, cease to operate at all.
The most surprising causes of these stressful realities lies at an even deeper core: Failure to understand the 5 Key Factors by which to measure productivity. These five keys will allow you to make better decisions, create accurate strategic projections and ultimately begin to position your company from where you are, to where you want to be.
- Objective Management: You must manage your staff strictly by setting clear and written objectives in motion. All progress reports, conversations and written tasks must be outcome oriented and focused solely on the proven tactics required to achieve it.
- Metric Measuring of Internal Productivity: All progress reporting and final objectives must have a metric form of measurement. Without this feature you are leaving the progress and overall success of the departments and employees solely up to the work ethics of each employee. Ethics that in 90% of cases, fall drastically short of the expectations set by the Executive and Management staff.
- Establishing Feedback Communication Lines: Simultaneous with the setting of outcomes, metrics and accountability, is creating the environment for constructive feedback. This structured outlet will allow your employees the opportunity to expound upon and provide improvements to the processes that you have implemented. In this system, the productivity almost always increases because the employees are acknowledged and rewarded for taking ownership of their role and respond positively to the significance of being heard.
- Measuring overall sales production: Your sales staff also needs very solid, well-articulated outcomes and best practices by which to achieve them. Without documented rules of engagement, you cannot accurately demand quantifiable results which over time will drastically diminish sales production.
- Metric Measuring of Service Productivity: Regardless of the client and/or situation, you know that there is a cultural way by which you expect the service aspect of your company to be handled. These parameters need to be in documented form and articulated in a way that allows variances in conversation, but adherence to the ultimate outcome. Only when properly documented, can you hold your service team accountable to the outcomes that you are expecting.
We understand that the most glaring and major issue with the above 5 points is the development and implementation of them. At the Business Experts, this is exactly what we provide for our clients. To receive a complimentary evaluation of the specific areas of your business that are in need of optimization, please enter your email address below
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