Industrial Management – No business survives without planning. And, with so many areas and processes, industrial management is essential for any business to optimize costs, increase productivity and stand out from the competition. Could you find out how to do it?
Have you ever heard that business without strategy is a shortcut to failure? Yet, that is what makes industrial management so important these days, whose market is increasingly competitive and marked by constant economic changes.
After all, the objective of industrial management is precisely to achieve a balance between processes and decision-making. This way, it is likely to increase productivity at a lower operating cost.
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Table of Contents
What is Industrial Management?
As we mentioned, strategy is a fundamental element in the management of any business. In industry, the set of techniques and tools to improve financial, material and data flows is called industrial management.
In this sense, it uses a more excellent productive dynamic, identifying its drawbacks and implementing improvements based on well-structured and reliable information. That is why industrial management allows cost reduction. By reducing rework and waste, the result is efficiency in manufacturing flows, without unnecessary expenses.
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Importance of Industrial Management
Regarding the quality of the processes, we must also consider the relationship with customers and suppliers. That also tends to improve when there is quality and integration in the industry.
First, this happens because it is possible to act on customer satisfaction and retention, ensuring the delivery of products on time and the quality of what manufactures.
Similarly, with suppliers, it becomes feasible to find better discounts or payment terms for raw materials and equipment, for example. After all, new acquisitions arise when results are promising and money well spent.
How to Make Good Industrial Management?
Optimizing industrial production management mainly involves defining objectives compatible with your business and mapping processes. So, it is necessary to define strategies that connect them.
1- Do a 360º Analysis of your operation
When we focus on a single sector or process, we start searching according to that specific routine. But proper industrial management requires an overall vision. Therefore, the first step is to know each production stage in the industry.
That implies the analysis of production and the demands, equipment, employees, customers, and suppliers, from each sector involved – stock, finance, etc.
One way to begin this analysis is to separate the processes into flow diagrams for each activity, considering the raw materials used and the manufactured products. Therefore, it is possible to extract knowledge about different aspects of production.
In addition, it is necessary to monitor the performance indicators of each area and the results of recent months, to have an idea of the errors and successes, which should be maintained or reformulated. It’s also time to listen to everyone’s thoughts based on their routines.
2- Create a Cost Reduction Plan
One of the tasks of the industrial production manager is to take into account all production costs. Thus, once the operation is understood, it is time to perform calculations searching for possible waste points.
Logistics, for example, is often one of the most important factors to review at this stage. After all, this is where money can easily be lost, even if the indicators are met.
Here, the watchword is efficiency. The entire cycle of operations must use the necessary resources to maintain quality.
3- Develop an Improvement Plan
Analyzed processes and their respective costs well organized. It’s time to optimize productivity. To be as fluid as possible, it is necessary to simplify tasks and eliminate rework.
From your flowchart, it will be possible to diagnose redundant activities with poorly planned deadlines and even check if the machinery is by the demand and if the space for the development of activities is adequate.
It is also time to take an in-depth look at production capacity, storage, and material availability. As well as the climate and culture of the work environment, aspects little-remembered but very necessary for the vision of business growth.
At this stage, it’s essential not to commit to meeting deadlines that exceed your industry’s operating capacity or even demanding unrealistic goals from employees.
It must bear in mind that correct industrial management is also a mechanism for sustainability in all senses. So be sustainable! Promote harmony between development and resources.
4- Share Information – Industrial Management
It’s easier to implement improvements when everyone understands the transformations needed to make them happen. It is necessary to show each thinking solution’s value for all departments and managers.
Allow those involved to access information about the operation as a whole. Thus, in addition to aligning processes and avoiding conflicts, the areas can see their role in the giant industrial puzzle.
This alignment is possible through data centralization, provided by management software that allows integrated management. That is specific technologies that cover all areas of the industry.
5- Keep up the Pace – Industrial Management
Of course, not all processes need improvement. However, it will do no good to buy more machines or increase your workforce, for example, without looking at how good numbers are currently being extracted.
Understand the appropriate steps to maintain and develop an action plan so that, amid growth, the essence of these processes remains the same.
6- Empower Employees
Employee training is a significant investment for any industry. So it is because training brings great benefits in terms of improvements for all business management.
After all, when employees are adequately trained, they are more productive and respond to adversity quickly and correctly.
In addition, training is essential for people’s motivation in the workplace. That’s because they begin to identify a way to develop their careers there.
And we are not only talking about supervisees, but also supervisors. Senior managers and analysts must constantly improve so that everyone is always evolving and aware of market movements.
7- Prevent Losses
Taking a precautionary stance is as important as any other cost reduction management strategy in the industry. But unfortunately, taking corrective action is often much greater than the money needed for preventive measures.
In this way, establish maintenance cycles for all equipment. It prevents damage not only to the machine itself but also to any unsafe working environment.
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Like machinery, accounts payable and receivable must also be up to date. Therefore, the verification must be periodic, which allows the visualization of leaks at some point in the industrial operation.
8- Monitor Stock
Remember when we mentioned the need for integrated departments? That is one of the points where this is extremely necessary and where you can see the best results of this lineup.
Acquisition costs go down when purchasing and inventory are aligned, making money spent on fees to keep products in stock.
When there is attention to stock, it is possible to avoid expenses without reducing production.
9- Use Quality Materials
Economics is not the same as cutting costs indiscriminately. Being thrifty is more about choosing the best value for your business.
It means that there is no use buying cheap equipment and materials if they do not provide the quality of their products. With faulty equipment, production can slow down or even fail.
In the long term, cheap machinery and materials can cause operational problems and require repairs. Also, the equipment may have a concise, useful life and require replacement sooner than the manager expects.
These operational problems, which can even lead to a work stoppage, cause further damage to the company.