Streamlining An Automotive Business

Could your automotive business could be more efficient? If it could, you should spend a little time organising operations to function more concisely in ways that can save your company both time and money. The following steps are easy to implement and may even reduce stress and pressure.

Outsource basic services.

To cut costs associated with recruiting, training, and paying for ancillary services like scheduling, invoicing, payroll, and customer support, consider outsourcing these functions to companies that specialize in managing them on an external basis, often for a fraction of the cost that you would doing them in-house. Some of the largest automotive companies in the world outsource their services and manufacturing. Telephone switchboard and marketing are additional services that can competently be handled by companies who do just this, which means they have received dedicated training and have acquired substantial experience. Certain kinds of manufacturing steps may be outsourced, such as basic parts for a product made at your facility, which may be cheaper when made by manufacturing companies in Mexico.

Streamline in-house processes.

At least annually, plan a trouble-shooting review of all company operations. This may take several days or weeks to thoroughly evaluate each department’s functions as you look for ways to eliminate unneeded steps or add shortcuts that may save time and lead to a streamlined process. Encourage employees to submit suggestions for ways of improving a process within the company. You might want to make it a competition, with the winner(s) receiving a monetary prize or something of commercial value, like season tickets to a sporting event or concert series.

Consolidate redundancies.

Another way to increase production efficiency is to combine repetitive processes. For example, if there are currently two inspection stations to check a product, these could be combined into one final inspection, with two inspectors to ensure accuracy. Depending on the type of inspection being done, having one inspection area instead of two may free up needed space and possibly equipment for other important tasks. Similarly, consolidation may be helpful when merging two or more personnel job duties. For example, if an employee seems to have extra time each day after completing assigned tasks, it might make sense to add duties from a part-time position, which can then be eliminated. When printing a company directory and procedures manual separately, combine them to reduce printing time and materials used for two separately printed covers, etc.

Take a survey.

Give employees a survey or questionnaire asking about ways in which their jobs can be performed more effectively. They may request additional training, which could require an initial outlay of funds. But if the training helps them to work faster or smarter over the next year or two, the return on investment will be worth it. Employees might be willing to share workspace by coordinating their shifts, one after the after, to decrease the amount of workspace needed. Workers are likely to have some great ideas about how to expedite their duties or remove extra steps.

For a minimal investment of time and cash, your company could be operating more efficiently in a matter of days or weeks. Take time to look, listen, and act to make changes that will rev up production while scaling down expenditures on department budgets. Everyone working together can make your business even better.

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