By: Tom Loya

How Can Optimization Help?

Optimization is used to enhance a process to make it better. These enhanced processes normally translate directly to dollars in the form of reduced scrap waste, reduced labor cost, and improved quality. Optimization also means better use of time and resources and better decisions. You cannot have a lean strategy without considering optimization in the process. And you cannot have an efficient business without using process improvement optimization to help reduce these inefficiencies.

Reason #1: Scrap Waste Reduction.

Let’s quickly look at a couple of ways optimization can help. The obvious one is scrap waste reduction. If you are purchasing raw material, the scrap material you throw away that you cannot use translates to lost money. These materials can be glass, vinyl, oil, water, sheets of paper, rolls of film, silicon circuit boards, etc. Optimization would help you utilize the material better. This prevents you from throwing away the material you normally would.

Optimization-saves-money

It does this by trying to find a better way to utilize that raw material by means of changing the order you process items. Such as monitoring for excess usage, etc. If you go through an average of 50 sheets of raw material a day, optimization will try to reduce that number. It will try to use the material better so maybe you utilize only 47 sheets. Therefore translating to saving money by reducing your material costs.

Reason #2: Creating More Revenue.

Optimization is not just limited to lean manufacturing or material optimization. For example, you could be a doctor’s office that can only take 8 patients an hour. By analyzing your process and optimizing exam room utilization, you may discover that you can increase to 10 patients an hour. This process improvement can be discovered by optimizing the amount of time it takes for an exam room to be sanitized and ready for the next patient. By allowing 2 more patients an hour, you can create more revenue.

Optimization will always help your bottom line.

If you haven’t considered how optimization can help your business with saving dollars, then now is the time to consider it. We all have areas we can improve. Often, just optimizing a few of our processes can translate to real savings. These optimization steps always help businesses. Whether it is in a struggling time or a prosperous time, optimization will always help your bottom line. There is no reason to wait.

Tornado Technologies is a custom software and application development company in Solon, OH. We help businesses increase revenue, efficiency, and value with software. Learn more here.

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Tags

lean manufacturing, lean strategy, manufacturing solutions, material cost, material optimization, optimzation, process improvement optimization, raw material, scrap material, scrap waste reduction


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