Increase Production Capacity with Efficiency and Ease
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As a whole, to increase production capacity is a key benefit of APS software, helping manufacturers efficiently meet current and future demand by synchronizing all aspects of the production process.
The world is growing by leaps and bounds, and if your company isn’t moving quicker and more efficiently, it’s basically getting stuck, right? These days, it’s not just about meeting demand; it’s about staying ahead of it. If a company can’t keep up with the production speed that customers expect, competitors will be more than happy to step in and take that opportunity. So, increasing production capacity is crucial if businesses want to stay in the game.
However, achieving that increase isn’t always easy. The easiest solution seems to be just to work harder or add more shifts, but optimizing capacity is more complex than you think. A company needs a solid strategy. If you’re smart about planning, it’s possible to make it happen.
If this sounds interesting, keep reading! In this article, we’ll discuss the tools and strategies that can help you optimize production capacity in a simpler and more efficient way.
What is the meaning of Production Capacity?
Let’s start with the basics. Production capacity is the maximum product output a company can achieve with its current resources over a specific period. This metric is vital for both short-term operations and long-term strategic decisions, as it guides manufacturers in scaling their processes. Capacity can be increased to address either immediate spikes in customer demand or future growth opportunities.
As a whole, to increase production capacity is a key benefit of APS software, helping manufacturers efficiently meet current and future demand by synchronizing all aspects of the production process.
With a clear and well-organized approach that considers the availability of materials, production schedules, and customer needs, companies can do much more with the resources they already have. The goal is to work smarter, not harder.
Some companies still try to juggle this complex task using manual processes, tracking everything by hand on paper or spreadsheets, or using other outdated tools. That’s not just risky; it’s slow and prone to errors. It’s like trying to put together a puzzle without even knowing what the picture looks like. You waste time, and your production ends up being much lower than it could be, opening opportunities to your competitors.
Production vs Production Capacity
What is the difference between production and production capacity?
Production is just the amount of stuff you’re making right now—like, the actual output you’re generating. On the other hand, production capacity is how much you could make if everything’s running at full speed with all the resources you’ve got. So, think of it like this: what you produce today is based on what your production capacity allows. If your capacity is maxed out, that’s all you’ll get. But what if you can increase that capacity? Well, suddenly, your production can go up, too. It’s all about what your systems and resources are capable of handling.
Advanced production planning with AI – SkyPlanner APS
Read more about our approach to production planning and optimization leveraging the power of AI.
How can you measure production capacity?
Measuring production capacity is not rocket science, and it is relatively straightforward. The simplest way to do this is by multiplying the capacity of a workstation or machine by the available working hours in a shift. For example, if a machine can sew 5 shirts per hour and the work shift lasts 7 hours, the production capacity for that machine would be 35 shirts per shift. This method gives a clear, basic understanding of how much a company can produce in a given time frame with its current resources, with no guessing involved!
Production Capacity Formula:
Production Capacity=(Available Work Hours)×(Machine Output or Employee Output per Hour)
This formula calculates the total number of units a company can produce during a specific period.
Example:
Let’s continue to use the shirt manufacturing example. If you have a machine that can produce 20 units per hour and you operate it for 8 hours a day, the production capacity for that machine per day would be:
Production Capacity=8hours/day×20units/hour=160units/day
This gives a precise estimate of how much output can be expected within a set period based on available resources.
7 Effective Ways to Increase Production Capacity
Here’s a list of our seven strategies to increase production capacity:
Optimize Workflow Efficiency
First, it’s vital to identify bottlenecks slowing everything down inside your company. Review each step of the production process thoroughly, from the arrival of raw materials to the departure of the finished product. Find the points where things are stalled or inefficient and that can be improved. Once you optimize the flow of materials and labor in these areas, you’ll see better efficiency and higher production without the need for additional resources. Simple logic!
Invest in Employee Training
Some may see it as an extra expense, but well-trained employees are the key to everything running smoothly. When your team knows exactly what they’re doing, they work faster and make fewer mistakes. By offering regular training sessions, you can ensure your employees stay updated on the latest production techniques and technologies. It’s a simple and cost-effective way to increase your production capacity without spending money on costly tools or systems and create a better work environment. It’s a win-win.
Upgrade Equipment
Sometimes, older machines simply can’t keep up with demand. Upgrading to newer, more efficient equipment can make a significant difference in production. New technology often brings improvements in speed, accuracy, and reliability. Study this option and see if it’s cost-effective.
Improve Inventory Management
Running out of materials can completely halt production, which is why efficient inventory management is essential—and, more importantly, preventable. By maintaining the right amount of stock on hand and avoiding both shortages and overstocking, you can keep production running smoothly. This also prevents costly delays and downtime, increasing overall capacity.
Implement APS Software
This is where Advanced Planning and Scheduling (APS) comes in. APS software is designed to align your resources and optimize production schedules, even when last-minute urgent orders come in. Increasing production capacity is an APS benefit, as the system balances production times, inventory, and orders in real-time. This ensures that you always produce efficiently and maximize your capacity without overloading your operations.
These strategies, when combined, can significantly impact your company’s production capacity. Manufacturers can meet increased demand and improve efficiency by streamlining processes, optimizing resources, and leveraging tools like APS software.
Stay Ahead of the Game with SkyPlanner APS!
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Ready to make things smoother and faster? Book a DEMO today and see for yourself how Arcturus AI can transform your production line!
