Amazing ways to Reduce Manufacturing Labor Costs

Posted by ADDVALUE Consulting Inc. on February 18th, 2020

An effective cost reduction strategy encapsulates a great balance between resourcing and cost control. Labor costs are the biggest concerns of every manufacturing unit and there are times when laying off employees becomes a choice which isn’t a solution.

In this post we will take a look at some really effective ways to decreases manufacturing labor costs by a significant margin. Read on:

1. Lean designs

Companies offering lean manufacturing training in India say that lean design is apt for organizations that have high product values and labor costs are pretty crucial. Companies must focus on simplifying designs and process standardization in order to reduce labor costs. When you design for quality, you eliminate any sort of rework and reduce labor costs by a huge margin. Product development is responsible for about 80 percent of product cost.

2. Lean production

The best business coaches in India say that lean production is adapted by most of the far-sighted companies these days because it eradicates non-productive processes. Besides, it is also known for increasing labor productivity and improving production processes. When these areas are paid attention to, labor costs reduce automatically. More units can be produced at low costs in a lesser amount of time.

3. Say no to overscheduling

You must use the best of algorithms and software programs for predictive scheduling rather than leaving scheduling to blind guesses. Advanced software keep you ahead in the game and you can easily optimize employee efforts with utmost ease. Since, you have accurate information at hand; you are sufficiently staffed to meet your production targets with quality intact. You can hire a company offering business coach in India and discuss about the best software that suits your needs.

4. Implementation of technology

Automation is the best way to reduce labor costs in the manufacturing industry. You must invest in technology and make the most of technological advancements. Automated assembly, inspection and component picking make your life easy and play a pivotal role in decreasing labor costs by a surprising margin.

5. Process standardization

We have stated this earlier as well. Process standardization is one of the most important aspects to keep labor costs under check. You need a handful of employees on the assembly line. Besides, factory automation and 24x7 productions can be achieved. Higher production output and decreased labor costs are the advantages of process standardization.

Apart from the pointers mentioned above, you can also utilize part time labor. Using part time labor is a great way to achieve labor cost reduction. Simply put labor costs are an important portion of the budget and you need to hire a company offering lean manufacturing training in Noida.

If you need more information about business coaching in India, feel free to touch base with us.