July 31, 2025

How to Improve Manufacturing Process: 7 Proven Strategies

Every manufacturing business dreams of running a smooth and efficient operation where production flows seamlessly, downtime is minimal, and output consistently meets demand.

But reaching this level of performance takes more than just wishful thinking. It requires thoughtful strategies and clever optimizations across workflows, equipment, and human resources. The good news? With the right strategy, tools, and systems, it’s achievable.

In this article, we’ll share actionable strategies to help you improve your manufacturing process, boost efficiency, and set your business on a path to sustainable growth.

What Typically Slows Down Manufacturing Processes?

Before we get into strategies for improvement, let's first look at some common manufacturing challenges:

Bottlenecks in Production Workflows

A bottleneck represents any point in a production process where the flow of work is restricted, causing a ripple effect that slows down the entire process. These can manifest as a specific machine with limited capacity, a manual assembly stage requiring excessive time, insufficient staffing at a particular workstation, or delays in quality checks or approval steps.

Bottlenecks reduce throughput and can increase lead times and costs. Identifying and eliminating them is critical to maintaining smooth and efficient production.

Outdated Equipment and Manual Systems

Another big reason for slowdowns in manufacturing environments is using outdated equipment and relying on manual methods.

Older equipment tends to break down more often, requires longer setup times and more maintenance, operates at lower speeds, and consumes more energy. Most older or legacy systems also don’t easily integrate with modern digital tools that have been specifically developed to improve manufacturing efficiency.

In addition to outdated equipment, many manufacturers today still rely on manual data entry and spreadsheets for tasks like tracking inventory, scheduling, or reporting. These methods increase the risks of errors, waste valuable time that could be spent on more productive activities, and offer little to no real-time visibility.

Inventory Mismanagement

Ineffective inventory management practices are another factor that often slows down manufacturing processes in many organizations and causes other problems.

For example, holding excessive inventory ties up capital, increases storage costs, and increases the risk of product obsolescence. Regarding obsolescence, it’s estimated that $163 billion worth of inventory is discarded every year due to expiry or overproduction.

Conversely, insufficient inventory can lead to stockouts, halting production lines, and delaying order fulfillment.

Common causes of inventory mismanagement include inaccurate demand forecasting, fragmented or siloed data systems, and a lack of real-time visibility into stock levels. Addressing these issues is essential for maintaining a balanced inventory that supports uninterrupted production.

Supply Chain Lags and Disruptions

Manufacturers depend heavily on timely deliveries of raw materials and components to keep operations running smoothly. Unfortunately, supply chain disruptions and lags are a persistent threat in the manufacturing world, costing organizations an estimated $184 billion every year, according to a recent survey.

These disruptions or lags can stem from various sources, including unreliable suppliers, transportation delays, natural disasters, geopolitical tensions, and inaccurate demand forecasting. Supply chain disruptions can result in halted production lines, increased operational costs due to expedited shipping or overtime labor, and missed delivery deadlines that damage customer relationships.

Diversifying suppliers, improving demand planning, and improving supply chain visibility tools can help mitigate some of these risks.

Labor Shortages and Skill Gaps

Labor shortages, especially in skilled roles like machinists or maintenance technicians, can cause equipment underutilization or force production lines to operate below capacity. By 2030, the manufacturing industry is projected to face a significant labor shortage, with estimates suggesting up to 2.1 million unfilled positions worldwide.

How to Improve Manufacturing Process: 7 Proven Strategies

Here are seven proven strategies for improving your manufacturing processes and addressing some of the issues we’ve highlighted above.

1. Automate Repetitive Tasks and Workflows

Automation, which means using technology to perform repetitive tasks with minimal human assistance, is one of the most effective ways to boost manufacturing efficiency.

Practical examples of automation include robotic arms for assembly operations, automated guided vehicles (AGVs) for transporting materials across the facility, and digital software tools for managing order processing, inventory, reporting, and administrative tasks.

Embracing automation can yield substantial benefits for organizations, including a notable reduction in labor costs, a decrease in the incidence of human error, and an acceleration of production cycles. Automating repetitive tasks or workflows also frees up skilled personnel to focus on higher-value activities that require human cognitive abilities, problem-solving, and critical thinking.

Furthermore, automation can enhance workplace safety (which is a big issue in manufacturing) by removing humans from potentially hazardous environments.

2. Adopt Lean Manufacturing Principles

Lean manufacturing, which is based on the Toyota Production System, focuses on creating more efficient workflows by eliminating anything that does not add value to the end product from the customer’s perspective. It consists of 5 primary principles:

Specify Value: Understand what the customer values in your product or service and what they are willing to pay for.
Map the Value Stream: Analyze every step in the production process and remove any that do not add value.
Create Flow: Eliminate any interruptions or bottlenecks in the value stream to create a smooth and efficient flow of information and materials.
Establish Pull: Produce only what the customer demands, when they demand it, rather than pushing products based on forecasts.
Pursue Perfection: Commit to continuous improvement by regularly evaluating and refining processes to reduce waste, improve quality, and boost efficiency over time.

When implemented effectively, lean manufacturing leads to faster production cycles, improved product quality, and lower operating costs.

3. Implement Real-Time Inventory Tracking

Real-time inventory tracking means continuously monitoring and updating the quantities, locations, and status of materials, components, and finished products as they move through your manufacturing process.

Instead of relying on periodic manual counts or delayed reporting, this approach provides instant, accurate data about your inventory status at any moment.

This constant stream of precise information empowers you to make informed, data-driven decisions regarding procurement and production planning. It helps you avoid common issues like running out of critical materials mid-production or holding excessive stock that ties up capital and storage space. With accurate, real-time data, you can perfectly balance what you have with what you need, and quickly react to changes in customer orders or supply chain problems.

Thanks to advancements in technology, implementing real-time tracking has become much more accessible and cost-effective than ever. For example, tools and technologies like barcode scanners and RFID (Radio Frequency Identification) tags enable automatic identification and tracking of inventory items without manual input.

4. Use Data to Drive Continuous Improvement (Kaizen)

Continuous improvement is a systematic, ongoing effort to enhance processes, products, or services incrementally over time. In manufacturing, this approach helps organizations stay competitive by constantly finding and fixing inefficiencies before they become significant problems. One of the most popular philosophies embodying this is Kaizen, a Japanese term meaning “change for the better.”

Kaizen encourages small, consistent improvements across all levels of an organization rather than big, disruptive changes. The idea is that many small adjustments add up to significant gains in productivity, quality, and cost savings.

Data plays a critical role in supporting continuous improvement. Collecting and analyzing accurate, real-time information about production cycles, defect rates, equipment performance, and other metrics can help you pinpoint bottlenecks, inefficiencies, and recurring issues. From this, you can then make any necessary adjustments..

For example, if data shows that a specific machine frequently causes delays, you can take targeted action, like recalibrating it, upgrading components, or retraining operators. These small, data-driven changes accumulate over time and can lead to sustained gains in productivity, quality, and even cost reduction.

5. Integrate your ERP and MES Systems

ERP (Enterprise Resource Planning) and MES (Manufacturing Execution System) are two important technologies that power modern manufacturing operations.

ERP is a comprehensive software platform that helps businesses manage core functions like finance, procurement, human resources, inventory, and order management. MES focuses specifically on the shop floor, helping manage tasks such as production scheduling, work-in-progress tracking, machine performance, and quality control.

Unfortunately, in most companies, these two systems often operate independently. This disconnected state leads to significant information silos, where data relevant to production decisions resides in one system but is not immediately accessible or synchronized with the other.

The consequence of this independence includes redundant data entry, potential for human error, delays in decision-making due to fragmented information, and a lack of real-time visibility into the actual status of orders on the factory floor relative to business plans. Such disjunctions can result in inefficient scheduling, suboptimal material utilization, and a hindered response to sudden changes in demand or production issues.

Integrating ERP and MES, manufacturers create a unified data ecosystem that breaks down these barriers. Production plans from the ERP can flow directly into MES as actionable shop floor tasks, while real-time production updates from the MES automatically sync with inventory, costing, and delivery schedules in the ERP.

This integration improves operational efficiency, enhances accuracy, and speeds up decision-making.

Looking for ERP and MES in one system? Check out Cin7’s ERP Lite solution. It provides the functionality of an ERP and MES in a system designed for SMBs.

6. Upskill Your Workforce and Empower Teams

A skilled and empowered workforce is fundamental to improving any manufacturing process. After all, technology and systems can only do so much. It's the people behind the machines who drive lasting improvements.

Upskilling means providing employees with ongoing training and development opportunities to enhance their technical knowledge, problem-solving abilities, and adaptability. As manufacturing processes become more automated and data-driven, workers need to understand new tools, software, and best practices to operate efficiently and safely, and that’s only possible by upskilling.

Empowerment means entrusting frontline employees with greater autonomy and responsibility, providing them with the authority to identify production issues, propose innovative solutions, and make immediate, informed decisions relevant to their work areas. This fosters a culture of ownership and initiative.

When employees feel valued and have a direct influence on process improvements, they become more invested in the company's success. This manifests as proactive contributions to continuous improvement initiatives, a greater willingness to accept and adapt to changes within the company, and an improved ability to solve problems on the spot.

7. Standardize Processes and Monitor Key Performance Indicators

Standardizing your manufacturing processes means creating clear, consistent, and repeatable ways to do every task in your factory.

Why is this so important? When every operator follows a set, optimized procedure, it

Reduces mistakes and variations in what you produce.
Ensures consistent product quality every time.
Simplifies training for both new hires and current employees.

Alongside standardization, monitoring key performance indicators (KPIs) is crucial. These are quantifiable metrics that reflect a process's success against specific objectives.

Relevant KPIs in manufacturing include overall production output, the cycle time for specific tasks or product batches, the rate of defects or rejects, and machine uptime versus downtime.

Consistent and systematic monitoring of these KPIs allows manufacturers to track progress against established benchmarks, identify any deviations from the standardized procedures, and implement corrective actions promptly, ensuring sustained process improvement.

What Tools Help Improve Manufacturing Efficiency?

Implementing proven strategies for manufacturing improvement often requires the adoption of specialized technologies or platforms. These tools allow you to automate, track, analyze, and improve your operations, turning your plans into tangible gains in efficiency and productivity.

Cloud-Based Inventory and Production Platforms

Cloud-based inventory and production platforms are centralized, easy-to-access digital systems for managing a manufacturer's resources (like materials and staff) and workflows. These platforms significantly boost manufacturing efficiency by offering:

Real-time visibility and faster decision-making: Cloud platforms provide a unified up-to-the-minute view of all inventory, production schedules, and order statuses.
Improved coordination across teams and your supply chain: Cloud systems unify data from multiple departments (procurement, production, warehouse, sales) and external partners. This integrated view promotes better communication and organizational alignment.
Scalability: Cloud platforms scale easily with your business needs, whether it’s handling increased order volumes, adding new product lines, or expanding to new locations.
Reduced IT complexity and maintenance: With cloud-based tools, you don’t have to maintain or update the software; the service provider handles it.
Enhanced data accuracy and automation: Cloud systems automate data capture and synchronization. This helps reduce errors from manual entry and ensures reliable inventory and production data. Accurate information leads to better production planning, optimized stock levels, and minimized waste.

IoT and Machine Monitoring Solutions

IoT (Internet of Things) technology uses smart sensors and devices that connect to the internet to collect and share data automatically.

These sensors can be placed on almost anything within a factory or production environment to monitor important conditions and activities. For example, they can be put on machines to track things like speed, temperature, vibrations, and output. The collected data is then sent in real time to a dashboard where managers and technicians can monitor it.

This helps in various ways. For example, you can spot problems early, like a machine overheating or slowing down, before they lead to breakdowns. Additionally, you can compare performance between different machines or shifts to find out what’s working best.

Predictive Maintenance Software

Predictive maintenance software utilizes advanced analytics, including machine learning algorithms, to forecast potential equipment failures before they occur. Instead of adhering to fixed maintenance schedules or reacting to breakdowns, this software analyzes patterns in machine data (collected through IoT devices) such as vibrations, temperature fluctuations, or energy consumption spikes to determine the optimal time for servicing.

Implementing predictive maintenance significantly reduces unexpected downtime, extends the lifespan of machinery, lowers maintenance costs, and prevents costly production interruptions, thus ensuring a more consistent and reliable manufacturing process.

Automated Scheduling and Resource Allocation Tools

These are intelligent systems that automatically create and adjust production schedules, assign jobs, and allocate resources like labor, materials, and equipment.

Automated scheduling tools take into account multiple variables, including machine capacity, labor availability, material constraints, and delivery deadlines. They can dynamically adjust schedules in response to real-time events, such as machine breakdowns or urgent orders. This automation minimizes idle time, balances workloads across production lines, reduces lead times, and ensures that resources, including machines, personnel, or materials, are utilized with maximum effectiveness.

What Are the Common Pitfalls When Improving Manufacturing Processes?

Several pitfalls can undermine even the most well-intentioned manufacturing improvement initiatives. Here are a few to be wary of.

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Investing in the Wrong Tech Stack

One major pitfall when pursuing manufacturing improvement is acquiring advanced technology without a precise alignment to specific operational needs. Manufacturers might invest heavily in the latest automation, AI, or software solutions based on industry trends rather than a thorough assessment of their unique bottlenecks and strategic objectives.

This can result in costly systems that are underutilized, incompatible with existing infrastructure or workflows, or simply do not address the organization's core inefficiencies. Such misdirected investments lead to wasted capital and disillusionment, hindering future improvement initiatives.

Ignoring Frontline Feedback

Frontline workers, such as machine operators, production supervisors, and maintenance technicians, are closest to the day-to-day operations. They often have the clearest understanding of what works, what doesn’t, and where hidden inefficiencies lie. Yet, a common misstep in manufacturing improvement efforts is overlooking their input during the planning and implementation of new systems or processes.

When strategies are developed in isolation without consulting the individuals who will ultimately use or be affected by them, the result is often a disconnect between intention and execution. Solutions may look good on paper but turn out to be impractical, disruptive, or challenging to adopt in the real-world environment. Worse still, bypassing frontline input can breed frustration and disengagement among workers, leading to resistance, poor adoption, or even active pushback.

Neglecting Change Management and Training

Significant process improvements and technology adoptions inherently involve substantial organizational change. A common mistake is underestimating the human side of transformation. When companies roll out new systems without a well-thought-out strategy for managing change and preparing staff, the result is often resistance, confusion, and subpar performance.

Employees may resist changes for various reasons, such as fear of job loss, uncertainty about new responsibilities, or simply a lack of clarity about why the change is necessary. Without clear communication and structured support, this resistance can quietly stall progress.

Equally problematic is insufficient training. Suppose workers don’t fully understand how to use new tools or adapt to new workflows. In that case, errors increase, adoption slows, and the organization fails to realize the full benefits of its investment.

To avoid these outcomes, manufacturers should take a proactive approach: communicate early and clearly about the purpose and benefits of any change, involve employees in the transition process, and deliver comprehensive, role-specific training. This builds confidence, accelerates adoption, and lays the foundation for long-term success.

Wrapping Up

Manufacturing improvements don’t happen by chance. They require an intentional strategic approach that aligns people, processes, and technology. As we’ve seen, practical ways to improve manufacturing include embracing automation and smart manufacturing, adopting lean principles, implementing real-time inventory tracking, and using data to drive continuous improvement.

For manufacturers seeking to centralize their inventory, automate and optimize production processes, and gain unparalleled visibility across their supply chain, Cin7 offers a powerful all-in-one platform that has been specifically built to support these needs for small and midsize manufacturers.

If you are ready to take the next step toward smarter, more efficient manufacturing, book a free demo of Cin7 today.