Productivity and sustainability trends have been adopted by manufacturers globally. These trends will be analyzed in terms of residential utilities and consumer goods. Sustainability and productivity elements are symbiotic as an organizational policy to use the two has numerous environmental and economic benefits. An increase in productivity is essential for sustainable development; thus, sustainability and productivity can determine an organization’s profitability and environmental impact on a community.
Manufacturing Productivity
Manufacturing productivity refers to profitability as it affects costs and competitive advantage. Core competencies are vital in determining the profitability of companies in an increasingly competitive global marketplace. Manufacturing productivity is measured as the ratio of output to input and describes the rate of the manufacturing units and the cost of human capital. The measure entails how much a company can produce in terms of throughput and quantity based on a specified amount of input. The input covers capital resources, human capital, natural resources, and technological know-how. Manufacturing productivity is measured over extended periods, including multiple economic cycles, due to the volatility of short-term estimates. The most common manufacturing productivity trends entail automation, augmented reality, and inventory management.
Automation is the use of machines to eliminate manual processes. This trend is synonymous with mechanical systems programmed to perform various production processes to increase efficiency (Gehringer, 2022). Automation ensures the streamlining of workflows by eliminating production errors and delays leading to lean production operations. In addition, it allows manufacturers to determine asset and production performance. Manufacturing automation enables faster production, thus reducing operational costs and increasing output. Augmented reality refers to computer-generated images to capture real-time production changes. Augmented reality is used to identify unsafe working conditions, envision finished products, and present real-life manufacturing processes. Inventory management comprises the flow of goods from manufacturers to warehouses and the point of sale. Inventory management’s main objective is to maintain the optimum inventory required for seamless production. Optimum inventory is an essential asset to a company and supports operation management by reducing costs associated with overstocking and understocking.
Consumer Good Application
Table 1. Industrial Production and Capacity Utilization
There was increased production and demand for residential utilities from January to April. Manufacturing output gained 3.4 percent in April, highlighting the increase in productivity throughout the six months. The transition from November to December and February to March were the only months with a significant decrease in manufacturing output. The average production of consumer goods is 107, and the lowest index is 98, highlighting the increased demand for residential utilities. The production capacity increases from January to April, highlighting the increased product demand.
Table 2.Industrial Production and Capacity Utilization
In April, manufacturing output gained 0.8 percent, marking the fourth straight month of 0.8 percent or more rises. The utility index increased by 2.4 percent. In April, total industrial production was 6.4 percent higher than a year ago, at 105.6 percent of the 2017 average. The market forces determine the number of goods in a market. The average production of consumer goods is 103, and the lowest index is 100, highlighting the increased demand for consumer goods. The production capacity increases from December to January and March to April highlight the increased product demand.
Sustainable Manufacturing
Sustainable manufacturing refers to the production method that minimizes waste and negative environmental impact. Sustainable manufacturing highlights an organization’s goals towards addressing ecological issues. It serves to improve and analyze an organization’s sustainable development target regarding the negative impact of business on society. An organization can create value by improving natural resource management through sustainable means. The prominent trends in sustainable manufacturing include using recycled materials, a circular economy, and tapping renewable energy.
Using recyclable materials minimizes the amount of plastic in the environment, a significant factor in environmental degradation. Recyclable materials are made from natural resources such as yarn, thus breaking down in natural environments. This eliminates the adverse effects of non-biodegradable products that take years to decompose, thus tainting the environment (Bezamat & Schwertner, 2022). Another trend is the circular economy, where manufacturers reuse the waste in a continuous loop. Waste is considered valuable; thus, companies innovate ways to extend product life by reusing them. This entails optimizing waste management, repairing instead of replacing equipment and using eco-design techniques emphasizing recyclable material. Manufactures can bring sustainability into manufacturing by implementing renewable energy options in operations. Carbon emissions are the most significant adverse effects of manufacturing industries; thus, renewable energy sources reduce greenhouse gas emissions. (Klebert, 2022) Using renewable energy sources, including energy conservation, tapping solar energy, and establishing water reclamation plants, helps an organization achieve net-zero emissions, thus reducing environmental impact.
Conclusion
Trends in manufacturing productivity help improve efficiency and can be used to ensure sustainability practices. Sustainable manufacturing increases corporate reputation through expanded transparency regarding the business’s social, economic, and environmental impact. Manufacturing productivity and sustainability relate to an organization’s ecological responsibility policy, climate change, greener materials, and the use of finite resources. Policies aimed at sustainability development help increase profitability regarding productivity as they reduce operational costs, including renewable energy and reusing materials.
References
Bezamat, F., & Schwertner, A. (2022). 8 innovations in advanced manufacturing that support enhanced ESG reporting. World Economic Forum.
Gehringer, A. (2022). Productivity and efficiency in manufacturing: What’s the difference in 2020?Rhythm systems.
Klebert, S. (2022). Carbon-neutral manufacturing is possible: here’s how. World Economic Forum.