Tips & Tools

How Engineer To Order manufacturers can create a culture of innovation

Total ETO

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So much of Engineer To Order manufacturing relies on remaining innovative in both the research and development side and the production side of the business.

 

To accomplish the task of staying fresh and continually moving forward, managers must look at new ways to boost efficiencies and streamline operations by encouraging a culture of innovation. Not only is this important for remaining competitive in an increasingly disruptive industry, but also in reducing costs and growing the business.

 

Embracing a culture of innovation must happen throughout the entire production process, from sales all the way to shipping. More Engineer To Order manufacturers are taking note too. According to the latest data from the National Science Foundation, manufacturing investment in R&D surged 6.7 percent from 2012 to 2013, increasing from $302 billion to $323 billion. This is good news for Engineer To Order companies that specialize in automation. To help prepare for this influx in business, custom design job shops need to continuously innovate their processes and product offerings to stay competitive against new and more flexible companies entering the industry.

Embrace risks – to a limit

Every business is built on a certain amount of risk, without it, companies would never grow. Without veering out into the unknown, a company will become stuck in their old ways without ever evolving. However, while managers should not stymie potential innovation due to a fear of risk, at a certain point, there is a chance that a risk might fail. It’s important to understand when to walk away and purposefully abandon a project. Managers need to continuously calculate their return on investment, measure the impact on growing the market and ensure the offering is advancing the company’s vision and strategic goals.

 

Take it incrementally

Innovation doesn’t necessarily involve ground-breaking inventions or game-changing revolutions. Simple, easy-to-implement innovations are sometimes more successful and contribute more to a company than major changes. Often, if a manager initiates a new process that is too drastic a departure from the previous system, it involves significant amount of investment in re-training workers and the eventual expenses associated with delays or setbacks caused by the change. Instead, by implementing minor efficiencies over a period of time, workers become more accustomed to the changes without having to make major adjustments to their current workflow. This not only reduces the cost of training employees, it also cuts back on the number of potential defective products due to poorly implemented changes.

 

“Simple, easy-to-implement innovations can benefit a company more than a single major change.”

Writing in Forbes, contributor Josh Linkner noted how merely putting a new twist on an old staple can create micro-innovations. After collecting, these micro-innovations build up steam and ultimately keep manufacturers more efficient over the long term. Simple tasks such as remapping the shop floor’s layout to boost mobility, or re-imagining how to conduct the weekly sales meeting. This relieves the burden of waiting for the world-shifting epiphany that can sometimes create more pressure instead of propelling the company toward solutions.

 

Incorporating the right technology

Incubating a culture of innovation involves expanding capabilities and attempting to go on new routes. Writing in ITWorldCanada, Brian Clendenin noted how CEOs are turning to IT leaders to help them deal with the disruptive forces in their industries. One of the foundations for innovative evolution for Engineer To Order manufacturers is ensuring all workers have the best tools available.

 

Using a configurable ERP solution like Total ETO, Engineer To Order manufacturers gain detailed, real-time access to all the financial data available, and managers are able to identify inefficiencies and trim away wasteful spending. Total ETO provides managers with alerts to let them know when a project is meeting or exceeding its estimate throughout the entire manufacturing process. The company can then take action to ensure the project stays on track and remains profitable.

 

Learn more about Total ETO by requesting a demo today.

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