Last updated on Jul 26, 2024

What do you do if you're considering new technology for manufacturing cost savings?

When considering new technology for manufacturing cost savings, it's essential to understand the potential benefits and challenges. Adopting new tech can streamline operations, reduce waste, and enhance product quality, but it also requires careful planning and execution. You're faced with decisions about investment costs, integration with existing systems, and the training of your workforce. It's not just about the flashy new machines or software; it's about ensuring they align with your manufacturing goals and contribute to a leaner, more efficient operation.

1 Assess Needs

Before diving into the latest technological advancements, take a step back and thoroughly assess your manufacturing needs. Identify areas where efficiency is lacking or where costs could be reduced. This might include analyzing production bottlenecks , energy consumption, or material waste. Understanding the specific issues you want to address will help you narrow down the types of technology that can offer real solutions, rather than adopting new systems for the sake of innovation alone.

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Engr. Md. Islam Hossain

Quality Management | Operations Management | Product & Process Development | Lean Practitioner.
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First we have to clearly define what is my aim to achieve with the new technology like reduced labor costs, increased efficiency or lower material costs. Then we should assess the technolgy based on our needs and goals.

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2 Research Options

Once you've pinpointed your operational challenges, it's time to research the technological solutions available. Look into various options that could address your needs, from automation and robotics to advanced software for supply chain management or predictive maintenance. Consider not only the initial investment but also the long-term savings and benefits. It's crucial to stay informed about the latest developments in manufacturing technology so that you can make educated decisions about what will work best for your operation.

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Engr. Md. Islam Hossain

Quality Management | Operations Management | Product & Process Development | Lean Practitioner.
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It will be very effective step, if possible to conduct a thorough research to identify potential technologies that meet the needs. But also it is also a time consuming process. On the other hand we can check industry trends, case studies, and benchmarks.

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3 Calculate ROI

Calculating the return on investment (ROI) is a critical step when considering new technology. This involves comparing the costs of the technology, including purchase, installation, and training, against the expected financial benefits, such as increased productivity, reduced labor costs, or lower material waste. A well-thought-out ROI analysis will help you understand whether the potential savings justify the investment and how long it will take for the technology to pay for itself.

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Md. Bellal Hossain

Asst. General Manager(Plant Head) at Adex Engineering Ltd.
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I think we need to analysis ROI before going with new technology. Whether its financially beneficial or not. Then we should considering new technology.

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Engr. Md. Islam Hossain

Quality Management | Operations Management | Product & Process Development | Lean Practitioner.
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Performing and evaluation of cost vs benefit analysis is crucial. And during evaluation we must compare intial investment, operational cost and potential savings. Then we can get clear picture of ROI and payback period.

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4 Plan Integration

Planning the integration of new technology into your existing manufacturing operations is a complex task that requires careful consideration. You need to think about how the new tech will fit with your current systems and processes. This might involve upgrading infrastructure , retraining staff, or even rethinking your production layout. The goal is to ensure a smooth transition that minimizes downtime and disruption while maximizing the benefits of the new technology.

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5 Pilot Testing

Before fully committing to a new technology, consider running a pilot test . Choose a small section of your operations where you can implement the tech on a trial basis. This allows you to monitor its performance and impact without overhauling your entire manufacturing process. During the pilot, gather data on efficiency , cost savings, and any issues that arise. This real-world testing can provide valuable insights and help you make informed decisions about a wider rollout.

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6 Continuous Improvement

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Travis Chambers, MBA

Operational Leader | Business Development | Strategic Growth and Sales | Industry Advocate |
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Innovation should manifest itself as the result of a company’s vision for its own future. The areas of the business which you imagine to be changed, or advanced, in the future are the areas most ripe for innovation. Manufacturing leaders who excel in areas of innovation tend to be identified for their extraordinary vision.

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What do you do if you're considering new technology for manufacturing cost savings?

1

2

3

4

5

6

7

1 Assess Needs

2 Research Options

3 Calculate ROI

4 Plan Integration

5 Pilot Testing

6 Continuous Improvement

7 Here’s what else to consider

Manufacturing Operations

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What do you do if you're considering new technology for manufacturing cost savings?

1

2

3

4

5

6

7

1 Assess Needs

2 Research Options

3 Calculate ROI

4 Plan Integration

5 Pilot Testing

6 Continuous Improvement

7 Here’s what else to consider

Manufacturing Operations

Rate this article

Thanks for your feedback

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