Production Efficiency: 6 Strategies to Improve Output

Picture this:. A 30-minute delay on Line 2 spirals into an all-day backlog. The crew scrambles to catch up, overtime kicks in, and by day’s end, nobody can pinpoint exactly what went wrong. If you lead a manufacturing company, you’ve likely lived this story more than once.

That is the problem with inefficiency. It hides in routine.

Production efficiency isn’t just a nice-to-have anymore; it’s a necessity. With rising labor costs, volatile material prices and customer timelines growing shorter, output per hour is becoming the ultimate differentiator. According to the U.S. Bureau of Labor Statistics, labor productivity in manufacturing fell 0.9% in 2023 while unit labor costs climbed 4.2%. That’s not a sustainable combination for companies already working with tight margins.

These days, improving output is often the only way to grow without expanding payroll or capital spending. Fortunately, big gains do not always require big investments. Sometimes the best results come from refining what you already have.

The following six strategies can help you find hidden capacity, reduce waste and increase production without overwhelming your operation.

#1: Use data to unlock production potential.

You can’t fix what you don’t see, which is why data is the backbone of any efficiency push. Tracking metrics like machine uptime, cycle time and changeover rates helps you understand where things are running smoothly and where they are not. A strong starting point is overall equipment effectiveness (OEE), which combines availability, performance and quality into a single benchmark. The National Institute of Standards and Technology considers OEE one of the most telling metrics for assessing real-time manufacturing efficiency.

Small changes in OEE can make a big difference. A 5% improvement may not sound dramatic. But over the course of hundreds of shifts, that can mean thousands of additional units produced without changing your headcount or footprint.

The tools are more accessible than ever. Cloud-based dashboards, automated alerts and mobile apps allow frontline supervisors to act on data in real time. You don’t need to overhaul your entire tech stack. Start by standardizing data collection across shifts and making it part of your daily routine. Hold quick standup meetings around live dashboards. Set targets for key metrics and review them weekly. The more your team uses data to guide decisions, the more productive your floor becomes.

#2: Optimize your process flow before buying new equipment.

It’s tempting to assume that more equipment means more output. But in many cases, inefficiencies in process flow are the real issue, not a lack of machinery. Before spending hundreds of thousands on new capital, manufacturers should take a closer look at how materials, people and information move through the facility.

A well-mapped process can reveal unnecessary steps, repeated tasks or points where inventory piles up. Value stream mapping is a proven method to analyze these flows and spot improvement opportunities. By identifying and eliminating non-value-added activities, many companies discover they can increase throughput without a single new purchase.

For example, if a bottleneck occurs between cutting and finishing stations, adjusting layouts or batch sizes might solve the problem. If setup times are excessive, implementing quick changeover procedures could keep machines running longer. These changes cost little but return measurable efficiency gains.

We have worked with manufacturers who significantly improved output by rearranging production cells, staggering shift breaks to keep lines moving, or even just updating work instructions. Simple adjustments can have an outsized effect when they are aligned with how your team actually works.

James Moore’s Business Advisory Services for manufacturers focus on uncovering these kinds of low-cost opportunities. Before you invest in more machinery, take the time to optimize the equipment you already own. The results may surprise you.

#3: Address labor bottlenecks through cross-training and incentives.

Labor shortages remain one of the biggest challenges in manufacturing. When only one person knows how to run a key machine or handle a critical setup, you’re vulnerable to costly slowdowns.

A cross-trained workforce is more flexible and better equipped to handle absences, surges in demand or unexpected disruptions. It also gives employees a clearer path for growth, which improves morale and retention.

Start with a skills matrix to document who knows what. Identify your critical roles and develop structured shadowing or rotation plans. Make it clear that learning new tasks is an opportunity, not a punishment.

Incentive programs can also play a role in improving output. Whether it is a monthly team bonus tied to production goals or recognition for quality improvements, rewards reinforce the behaviors you want to see more of. Just make sure any incentive system is tied to metrics that are easy to track , clearly understood and within employees’ control.

#4: Perform preventative and predictive maintenance.

When production stops, so does revenue. Yet too often, maintenance is treated as an afterthought until a machine fails and everything grinds to a halt. A strong maintenance strategy is one of the simplest ways to improve output without adding labor or equipment.

Preventive maintenance focuses on regularly scheduled inspections and part replacements to keep equipment running smoothly. Predictive maintenance, on the other hand, uses data from sensors and machine logs to identify wear patterns and predict failures before they happen. Both approaches reduce unplanned downtime and extend the life of expensive assets.

The key is consistency. Maintenance routines must be tied to usage as well as time. For example, inspecting a press after every 10,000 cycles provides more actionable insight than checking it every other Friday. Shop floor systems can automatically trigger alerts when thresholds are met, and technicians can log tasks using tablets or mobile apps for real-time tracking.

More advanced manufacturers are using vibration analysis, thermal imaging and oil sampling to detect subtle signs of mechanical stress. While these tools require some upfront investment, the cost of a single unexpected breakdown often justifies the expense.

Maintenance should be part of your production planning, not a side conversation. Our Manufacturing Services team helps clients connect their financial and operational data to understand how downtime affects cost per unit and delivery timelines.

#5: Employ Lean thinking (small improvements make a big impact).

Lean manufacturing is about doing more with what you already have. By focusing on eliminating waste and improving flow, lean strategies help manufacturers unlock hidden capacity across the shop floor.

Start small. A daily five-minute team meeting to surface improvement ideas. A visual board that tracks progress toward output goals. A 5S cleanup that clears space and reduces motion waste. These small steps build momentum and reinforce a culture of continuous improvement.

The concept of kaizen, or ongoing incremental change, is especially powerful in mid-sized manufacturing. You may not have the staff or budget for full-scale Lean transformations, but you can empower your team to fix the things that slow them down. Over time, that grassroots approach leads to higher productivity and better job satisfaction.

Companies that implement Lean principles can see double-digit gains in throughput and quality. Even better, many Lean improvements don’t cost anything but time and focus. To help with buy-in, tie the changes to specific goals like reducing overtime or increasing first-pass yield. And make sure to celebrate wins. The more success you show, the more engaged your people will become.

#6: Increase output with smarter tax planning and advisory support.

Efficiency extends beyond the production line. Your financial strategy directly affects your ability to grow output and capture profit. Strategic tax planning plays a vital role in enabling that growth.

For manufacturers, integrating cost accounting with production data provides clarity on which operations drive profit and which erode it. This visibility helps guide decisions on capital projects, inventory management, and pricing. One often-overlooked opportunity is the federal research and development (R&D) tax credit. If your team is exploring new product designs, improving processes or trialing custom materials, you may qualify.

R&D tax credits, claimed via Form 6765,offer up to 20% credit on qualified research expenses or a simplified 14% calculation option. These credits directly reduce income or payroll tax liabilities, freeing up capital that can be reinvested into production assets or workforce development.

Our R&D Tax Credit Services page explains how James Moore helps manufacturers document qualifying activities, calculate expenses accurately, and ensure compliance with IRS guidelines. Many clients are surprised to find that their routine process improvements or small-scale experiments qualify.

In addition to R&D credits, tax strategies focused on capital expenditure planning, accelerated depreciation and inventory accounting can bolster your cash flow. When operational and financial strategy come together, you see meaningful improvements in both output and profitability.

Make your production gains count.

Manufacturers who focus on practical, low-cost improvements often see faster results than those chasing large-scale overhauls. By aligning operational adjustments with financial planning, businesses can gain better control of output, reduce waste and strengthen margins.

At James Moore, Our team helps identify and implement these strategies effectively. From process assessments and labor optimization to financial planning and R&D tax credit analysis, experienced advisors can guide you through the steps that lead to measurable production gains.

Want to discover how efficient operations can fuel growth? Contact a James Moore professional today to learn how we can support your production goals.

All content provided in this article is for informational purposes only. Matters discussed in this article are subject to change. For up-to-date information on this subject please contact a James Moore professional. James Moore will not be held responsible for any claim, loss, damage or inconvenience caused as a result of any information within these pages or any information accessed through this site.