How to Improve Production Efficiency: 5 Strategies

Gears that say production efficiency, how to improve production efficiency
Gears that say production efficiency, how to improve production efficiency

Maximum production efficiency is the goal for many manufacturers, leading to reliable output, safer work environments, and improved customer experience. And it requires a concerted effort over time to achieve. This blog will explore how to improve production efficiency and how it’s measured. We’ll also explain why LLumin’s CMMS+ (Computerized Maintenance Management System) can help you track important metrics.

Understanding Production Efficiency

Production efficiency (PE) optimizes resources to achieve the best possible output with minimal waste. It’s a balance between quantity, quality, and resource utilization. To understand the concept, it’s important to understand how to measure it. The formula for calculating production efficiency is fairly simple:

Actual Output

Standard Output

Production Efficiency (%)



(X/Y) × 100

To measure your plant’s production efficiency, you will need to compare what’s actually produced (actual output rate) against what should be produced under ideal conditions (standard output rate). For example, if your production line is designed to produce 300 units per day but only manages to produce 180, the standard output is 300 units, while your actual output is 180.

You will calculate PE as follows: (180/300) x 100 = 60% efficiency rate.

In this case, you can start identifying areas that are leading to lower production levels and gauge the effectiveness of your current production processes. However, PE is not the only metric you can use to improve production efficiency.

Overall Equipment Effectiveness

Production efficiency can also be measured as Overall Equipment Effectiveness (OEE). This metric helps manufacturers determine the percentage of planned production time that is truly productive. An OEE score of 100 percent indicates a factory that is completely productive and produces products that meet quality standards without downtime or disruptions. 

This metric can then be used to hone in on the six big losses:

Availability Loss

  • Equipment failure
  • Setup and adjustments

Performance Loss

  • Idling and minor stops
  • Reduced speed

Quality Loss

  • Process defects
  • Reduced yield

Measuring PE and OEE is recommended to support continuous improvement. By tracking these important metrics, your organization can identify the contributing factors of production loss and gain important insights into improving efficiency, eliminating waste, and reducing downtime systematically. 

How to Improve Production Efficiency

The path to improved production efficiency is multifaceted. It will depend on your industry and should involve an analysis of your current production workflows. Applying lean principles can help, as can investing in employee training to support teams with the motivation and skillset to support efficient production processes. Technology will also be pivotal in the most up-to-date efficiency improvement methods. 

Below, we’ve listed the top five strategies that can help you improve production efficiency.

Strategies for Enhancing Efficiency
Workflow Analysis

Examine and optimize production workflows to identify and eliminate inefficiencies.

Lean Manufacturing

Implement principles like 5S and JIT to streamline processes.

Technology Integration

Adopt advanced technologies like IoT, AI, and automation.

Employee Training

Invest in skill development and motivational initiatives for staff.

Utilizing CMMS

Leverage CMMS for maintenance management, asset tracking, and analytics.

LLumin’s CMMS+

LLumin’s CMMS+ can help you optimize every aspect of your production process. It can track every machine and asset across multiple locations. It enables users to track large KPI data sets with advanced analytics and artificial intelligence (AI) technologies to help maximize uptime and predict equipment failure before it occurs. LLumin’s cloud-based, mobile-ready solution can collect and analyze data across your entire organization without re-engineering new systems to accomplish this. And when the system identifies signs of potential failures on parameters and variables such as temperature, flow, current, noise, or even calculated values that reflect efficiency, it will automatically execute actions to address the issue immediately.

How to Improve Production Efficiency With LLumin

With increasing technological advancements, it’s now possible to accomplish more with less waste and expense. Using the right software can be a competitive advantage in markets where profit margins are slim and daily operational challenges are commonplace. 

However, improving production efficiency will be ongoing even with the best tools. Adopting a culture of continuous improvement that encourages strategic planning, efficiency, and tracking important performance metrics can lead to gains instead of losses in a competitive industry.

Getting Started With LLumin

LLumin develops innovative CMMS software to manage and track assets for industrial plants, municipalities, utilities, fleets, and facilities. If you’d like to learn more about the total effective equipment performance KPI, we encourage you to schedule a free demo or contact the experts at LLumin to see how our CMMS+ software can help you reach maximum productivity and efficiency goals.

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