In a hyper-competitive environment, such as the manufacturing industry, your competition is only marginally better than you in revenues and profitability. While managers spend most (or all) of their time working to stay on top of daily tasks and jobs, they neglect to pay attention to hidden obstacles that will rob you of those profits.
What is a hidden obstacle?
A hidden obstacle works in opposition to a direct obstacle that affects productivity on the first degree. Production level running 30% below full capacity, increasing maintenance costs per machine, workforce needing 2 to 3 weeks of training or unoptimized processes are examples of direct obstacles to productivity. In the manufacturing industry, managing those aspects is not optional, it is vital for a business to generate positive margins.
However, as the business grows, hidden obstacles start to appear and undermine all the hard work generated to maximize productivity. While managers and executives focus all their energy to meet deadlines and fulfill contracts, companies don't realize that the business doesn't run as smoothly as before. Getting accurate information about the business is becoming harder, they use multiple software for different processes and end up juggling between operating systems that report corrupt and duplicated data. Those are the hidden obstacles to productivity, they don't have a direct impact on the efficiency of the shop floor, but they prevent businesses to operate seamlessly. Inaccurate data prevent managers from making informed decisions, accounting takes days or weeks to put together reports, the complications are many, and trickle down affects your entire organization. Here are the 6 most common hidden obstacles that impact your business efficiency.
6 most common hidden obstacles:
Occurs when the data is inaccurate, missing, or in an unreachable format. It either tells the wrong story of what is actually going on or an outdated story of the business
Lack of Informational Access
When modules and functionality within the business are not seamlessly integrated, information is scattered and extremely burdensome to aquire; resulting in loss of efficiency
Occurs when the same data needs to be input multiple times. This not only allows for errors, it also decreases productivity of the entire workforce
Long and Strenuous Accounting
Traditional accounting requires multiple inputs of information from different areas within a business. Without a software that automatically syncs all the information into one centralized database, the day to day accounting is heavily burdened with repetition and horribly inefficient
Multiple Software Packages
Businesses acquire multiple software packages as they grow, making it more difficult to integrate all the data. The software that once was helpful, not is burdensome and cannot keep up with your current production capacity
Misinformed Sales Team
Using a separate software for sales, production, shipping, and accounting jeopardizes your customer relationships. When teams lack important information, costly customer facing mistakes are mare. This impacts the entire sales process
Read Also: How to Choose a Manufacturing ERP Software?