Process Optimization Trends: Top Insights on Boosting Manufacturing Efficiency in Small to Medium Shops
The manufacturing sector is grappling with a unique challenge—balancing the need for process optimization with minimal capital investment. As we approach 2025, small and medium-sized manufacturers are hesitant to spend significant capital dollars, driving an increasing focus on optimizing existing resources. This article explores the key trends shaping process optimization, including expert strategies for improving manufacturing efficiency without heavy capital expenditure. By using process optimization trends examining utility evaluations, system maintenance, leasing options, and automation, we provide actionable insights that can keep small and medium shops competitive and efficient.
Current Trends in Operational Efficiency and Process Optimization
The scrutiny over capital spending has led manufacturers to prioritize process optimization. Digital transformation is crucial in this shift, driving agility and adaptation for companies facing market changes and technological advancements. Small and medium shops, in particular, are making strategic decisions to improve operational efficiency by using what they already have.
Optimizing Existing Resources
One of the most significant trends is the shift toward optimizing existing resources.This approach involves thorough audits of utility systems, such as air, natural gas, and steam, to identify leaks, inefficiencies, and potential cost-saving opportunities.
Utility Evaluations
Conducting a comprehensive utility audit is critical for identifying inefficiencies that could cost manufacturers thousands annually. For example, an audit of compressed air systems often uncovers leaks that can result in losing a measurable amount of generated air. Addressing these leaks could lead to significant energy and cost savings.
Key Actions:
Air System Audits: Identify leaks and inefficiencies in air compressors. Regular maintenance, including oil inspections and pressure audits, helps maintain system performance.
Steam System Optimization: Perform steam trap audits and pressure checks to ensure optimal performance. Over time, steam systems can become less efficient due to system component wear and failure, leading to wasted energy and higher costs.
Operating Leases as a Strategy
Another emerging trend is using operating leases as an alternative to capital expenditure. Instead of purchasing large amounts of equipment upfront, small to medium shops can opt to lease it with an option to buy at the end of the lease period. This arrangement allows businesses to upgrade their equipment without straining capital budgets. Leasing equipment can also provide a competitive advantage by allowing access to the latest technology and driving process improvements.
A small manufacturer may lease an upgraded SCADA (Supervisory Control and Data Acquisition) system to improve shop floor visibility, process automation, and efficiency. Leasing ensures shop owners can access the latest technology, leveraging innovation in process improvement without a substantial capital outlay.
Utility Optimization for Cost Savings
Utility systems support manufacturing methods but can become inefficient over time through component wear and tear. Regular utility audits can uncover improvement opportunities, saving energy and money.
Air and Gas Utility Audits
Air compressors and natural gas systems are critical components of daily operations in many manufacturing facilities. However, leaks, improper or ineffective maintenance, and outdated systems can introduce inefficiency. Additionally, manufacturers face challenges in raw material sourcing through rising costs and supply chain issues, further elevating the need to optimize processes. As a result, enrolling system experts to conduct regular audits is essential to maintaining these systems’ effectiveness.
Air System Efficiency
One of the most common inefficiencies in manufacturing plants is leaks in compressed air systems. According to industry research, approximately 25-30% of compressed air escapes through leaks, which leads to increased energy consumption and costs. Regular audits can identify these leaks and ensure the system runs at its peak efficiency.
Key Actions:
To prevent performance issues, conduct detailed pressure audits and oil inspections regularly.
Review system design to handle current operational demands without overburdening equipment.
Steam System Optimization
Steam systems often experience performance degradation over time, particularly as equipment is added or relocated within a facility. Steam buildup can cause aqueous corrosion, slowly degrading materials over time until a leak causes the system to shut down or need repair. Adding a steam trap and holistic pressure audits can significantly improve efficiency.
Steam Trap Audits
A common issue with steam systems is faulty traps, which can cause energy losses. A regular steam trap audit can identify malfunctioning traps and prevent unnecessary energy waste.
Key Actions:
Conduct a system-wide review to identify outdated components and optimize steam flow.
Holistic System Reviews for Continuous Improvement and Long-Term Efficiency
Manufacturing systems constantly change with the release of new equipment or improved process steps. As a result, the original system design may no longer be efficient. Piecing process equipment together can add natural inefficiencies that a high-level review can identify.
System Design Review and Optimization
A thorough system design review is one of the best ways to optimize a manufacturing facility. This review should consider key performance indicators (KPIs) to measure the success and impact of the optimizations. These KPIs can quantify the magnitude of the inefficiencies, guiding shop owners toward which steps to change first and finding bottlenecks and under-utilized capacity areas. They should align with company goals and be specific and measurable to ensure they will drive tangible value for the shop.
Manufacturing KPIs include:
On-time delivery
Fulfillment of production schedule
Total cycle time
Throughput
Capacity utilization
Changeover time
Product yield
Scrap
Planned maintenance (and % emergency orders)
Availability (uptime vs. downtime)
Customer return rate
Operational equipment effectiveness
A manufacturer that adds new production lines without adjusting utility systems may find that the original design no longer meets the demands of the new equipment. A system review can help realign utilities and processes to meet current operational requirements.
Key Actions:
Perform a complete system analysis, focusing on how equipment and utilities interact.
Use spaghetti diagrams to map out process inefficiencies and streamline operations.
Upgrading and Updating Obsolete Equipment
As manufacturing technology evolves, older systems often become bottlenecks. Upgrading legacy equipment, especially supervisory control and data acquisition (SCADA) and operational technology (OT) networking systems, can significantly improve business process management, flow, and system efficiency.
SCADA/OT Systems
Updating outdated SCADA or OT systems can dramatically improve a shop’s ability to monitor and control processes. Modern SCADA systems offer advanced data analytics and artificial intelligence that help to optimize operations in real time.
Key Actions:
Review legacy systems to identify outdated components.
Upgrade networking and control systems incrementally to reduce upfront costs.
TakT Time and Process Flow Optimization
Achieving optimal takt time—the piece-part manufacturing rate required to meet customer demand—is essential for maximizing throughput and minimizing downtime. Small to medium shops can greatly benefit from takt time analysis along with process design and flow improvements, as the metric helps assess manufacturing capacity and compares production with demand.
Takt Time Analysis
Takt time is a critical metric for balancing production rates with customer demand. By analyzing takt time, manufacturers can identify areas where processes are lagging and make adjustments to improve efficiency. A small manufacturer may find that their takt time is longer than customer demand requires due to inefficient machine setups. Adjusting setups and reducing machine downtime can help them effectively meet customer demand.
Key Actions:
Conduct takt time analysis to identify inefficiencies. You can calculate takt time by dividing production time by customer demand. A value greater than 1 indicates a shortfall in production rate.
Implement continuous improvement strategies to reduce cycle time.
Process Flow Diagramming and Spaghetti Diagrams
Visualizing a production process through diagrams can highlight inefficiencies. Process flow diagrams map out each step in production, while spaghetti diagrams (see Fig. 1) show the movement of materials or workers across the shop floor. Leveraging AI and ML can enhance process efficiency by automating tasks and minimizing errors.
Generic spaghetti diagram. Image courtesy of Lean Enterprise Institute
Process Optimization Tools
Manufacturers can quickly identify bottlenecks or unnecessary steps in the supply chain production cycle by mapping out processes visually. This approach helps optimize workflow and reduce wasted time and effort. Kanban is one of the lean manufacturing tools that provides a visual status.
Key Actions:
Create spaghetti diagrams to track material and labor flow.
Optimize layout and processes to reduce inefficiencies.
Accessible Process Automation for Small to Medium Shops
Automation is no longer exclusive to large-scale manufacturers. Now, small and medium shops can access affordable automation solutions that help improve business processes and efficiency.
Implementing Scalable Automation
The adoption of scalable automation allows smaller manufacturers to begin with simple automation tools and gradually expand their capabilities as the business grows. Programmable automation and robotics help scale automation for smaller shops.
Programming commands into the equipment controls unlocks flexible design and quantities as large production volumes. Robotics optimize product consistency and production rate, while custom sequences can deliver high-mix, low-volume production at scale for small and medium-sized factories.
Key Actions:
Start with small-scale automation tools like robotic welders or PLCs.
Gradually increase automation to scale production capabilities.
Upgrading Legacy Systems with SCADA/OT Integration
Legacy systems can be upgraded over time to integrate with newer automation tools. In addition, combining domain knowledge of operations performance data with analytics can significantly enhance operational efficiencies and improve process efficiency.
Upgrading SCADA and OT networks enables real-time monitoring and process management, which enhances shop floor visibility and efficiency. Upgrading older systems can happen simultaneously, investing downtime for an optimal-efficiency output. This outcome improves system coordination and reduces downtime in subsequent service cycles.
A small shop that upgrades its SCADA system may see immediate benefits in gathering and analyzing production data, providing operations leaders with a view into equipment performance and likely maintenance timing.
Key Actions:
Upgrade legacy SCADA systems incrementally to reduce upfront costs.
Integrate automation tools for better process control and data analytics.
Enhancing Efficiency for Competitive Advantage
Small to medium-sized manufacturers must prioritize optimizing existing resources to improve productivity and maintain competitiveness. Capital is more scrutinized than in recent years, so doing more with less and “find” process optimization opportunities that deliver improved profitability.
Businesses can significantly improve efficiency without large capital investments through utility audits, system maintenance, leasing options, and scalable automation. By adopting these expert strategies, manufacturers can enhance process flow, minimize waste, and ultimately achieve higher levels of manufacturing efficiency.
📞: Contact Turner Process here to schedule a consultation with our process optimization leaders.