How to Decrease the Cost of Production With Automation

Employees working in a production line

If you own or manage a business, labor costs are likely taking up the most room on your balance sheet. In theory, the quickest way to resolve this issue would be to cut labor altogether, but labor costs are an essential—and mostly unavoidable—reality for almost every business, regardless of size. Without people to do the work, you can’t sell or distribute your products. 

But you can mitigate labor costs and improve your operations with two significant steps: 

Step 1: Automate Your Operation

For storage, warehouse, or distribution environments, automated pallet-handling equipment is programmed to do all the heavy lifting. With automation, there are fewer employees on the front line as the machinery manages packaging and assembly. Automated palletizers not only do the work much faster than manual labor, but they also require no labor shift planning, staffing, or supervision. Plus, there’s no risk of human error, so don’t stress over maintenance or repairs on defects. As a result, you can expect more consistent quality, quicker outputs, and streamlined production. 

But adopting an automated workflow is just a small portion of the work. The rest of the responsibilities require you to integrate the technology with your day-to-day operations. 

Step 2: Choose a Simple Product Design

Manufacturers can save a significant amount of money on parts, materials, quality, and labor by prioritizing a facility’s design. Consider manufacturing issues such as raw material selection, dimensional requirements, and secondary design phases. Once you have enough resources and the right design specifications, you can program your automation system to accelerate production. Streamline everything from concept to the final packaging and watch your overhead and labor costs shrink. 

Optimize Your Working Environment

Almost as equally important as the product design is the layout of your facility. The simpler the design, the easier it is for your staff to streamline production. When you create an automated infrastructure, you’re choosing the sleekest and most compact machinery on the market. This means less equipment cluttering busy work zones. As a result, you get an open-space environment for your employees to move around safely and comfortably. 

Eliminate Overscheduling

One of the easiest ways to prevent rising production costs is to clean up the schedule of the operation. The best way to do this is by complementing your predictive scheduling software with your factory automation system. With this integration, managers can look ahead at the incoming production demand and make scheduling decisions based on that data. This helps ensure your business is adequately staffed to meet demand, which helps eliminate excess labor. 

But project efficiency isn’t the only perk. With an automated scheduling platform, all objectives are clearly defined in a predictable timeline. This provides decision-makers with more flexibility to handle administrative work. Now managers and supervisors have more time to organize and manage benefits, hourly wages, sick days, vacation time, and other miscellaneous tasks.

Modernize Your Infrastructure

One of the most critical factors of production is the technology you use inside your warehouse or other facility. Today’s machinery performs strenuous labor more efficiently and effectively than all manual procedures. And unlike humans, manufacturing equipment doesn’t get tired with monotonous tasks. Monitor these assets frequently and apply proper maintenance, and you can expect years of efficiency inside your facility. 

The goal is to make your daily operations seamless by minimizing production time. That’s easily accomplished when you modernize your infrastructure with these tools:

Prioritize Safety

There are eight major types of workplace injuries, and most of them are related to manual labor. If someone gets hurt on the job, it not only causes physical harm to that person, but it also puts strain on the company and its stakeholders. Even minor wounds cost thousands of dollars in lost wages, medical bills, legal fees, and stress. 

Most workplace accidents stem from human error, but much of that risk is preventable with a palletizing strategy that uses automation. Build a safe material-handling protocol and train your employees on proper operating techniques. Finally, make sure you have an effective emergency response plan. In the long run, this risk management process can help save your operation an enormous amount of money in overhead costs

Boost Assembly Line Efficiency With ROI PalletPOD

Minimizing production doesn’t mean you have to realign your budget. At ROI, we know how busy production lines get, and we’re here to help simplify your fulfillment efforts with tools that won’t hurt your bottom line. Our exclusive PalletPOD gallery is the sleekest, most functional form of utility equipment on the market. Whether it’s automation, engine stands, or other pallet-handling machinery, you can count on us to provide the right solutions. 

When you’re ready to learn more about PalletPOD and it’s many unique advantages, reach out to ROI to get started with your free consultation. Contact us today!