Production Rate

REVIEWED BY WILL KENTON

Updated Apr 25, 2018

What Is the Production Rate?
Production rate, in terms of manufacturing, refers to the number of goods that
can be produced during a given period of time. Alternatively, production rate is
also the amount of time it takes to produce one unit of a good.

In construction, this is the rate at which workers are expected to complete a

certain segment, such as a road or building. The production rate will depend on
the speed at which workers are expected to operate, generally categorized as
slow, average, or fast.

Production Rate Explained

For manufacturing and construction, a higher production rate can lead to
a decrease in quality. As machines or employees work to have more product
pushed through the production line or more of a building completed, more
mistakes are likely to happen. There is thus a point at which a decrease in quality
could wind up costing a company more, even if less time is needed to push out a
unit.

Production rate can be expressed as a factor of the maximum output possible

minus the rate of defects in the products. Any production line can expect to see
some degree of flaws in the items produced. The frequency and severity of the
defects will reduce the number of viable, usable products that will be generated.

Management might review the elements of production to discern where errors or

slowdowns occur and then take measures to address those issues to increase
the production rate. Outside factors can also affect the production rate of any
operation. Availability of materials and available skilled personnel to perform the
production work can limit the pace. For example, if a crucial source of materials
becomes inaccessible or limited, the production rate may be forced to slow or
halt.

What Affects Production Rate?

The nature of the material and the complexity of the product can also affect the
production rate. The more intricate and precise the end product is, the more time
may be needed to complete the product. As manufacturing becomes more
efficient, through new methods or techniques that reduce the possibility of
defects in the process, the production rate will likely increase.
Production rate, along with the quality of the product, can play a significant factor
in pricing. Rapidly produced, lower-quality products are more likely to be priced
low as a reflection of the cost and toil required to make each unit. For goods that
require are a longer time investment, with a slower production rate, pricing may
be higher to compensate for the effort and outlays that went into creating the
product.

Achieving high productivity in small businesses typically involves getting the most out of limited
resources, such as your current staff or available equipment. A challenge to business owners is to
discover ways to increase productivity while maintaining high levels of quality. A variety of methods
are available to accomplish this, including motivating and empowering your workers and streamlining
production processes, or even changing them if necessary.

Empower Workers to Give Recommendations

Your workers are the ones who are immersed in your production processes on a daily basis, so

empower them to develop ideas for improvement. Let your workers detail their work activities and
perform an analysis. Once they take a closer look at how they spend their time, they can
recommend ways to perform a process faster and eliminate waste. Another thing to consider is that
workers who feel empowered are more likely demonstrate increased productivity.

Eliminate Valueless Processes

One-third to two-thirds of employee tasks may be unnecessary or add little or no value. Some
workers may perform overlapping or repetitive tasks, which decreases overall productivity. Talk to
your team and analyze your work processes to eliminate needless tasks like redoing, re-entering or
re-testing. Consider investing in collaboration software that makes it easy for team members to
interact and offer up real-time reporting on processes that need to be evaluated.

Improve Employee Training

Inadequate training may be the cause of substandard quality of your products and can also

adversely affect production time. Investing in proper training for new hires can eliminate costly
mistakes and ensure that the work is done right the first time. This can also reduce the need for
quality control procedures and improve the overall speed of your production process. Consider
designating one person as a trainer, preferably someone with experience and expertise in your
production process.

Establish Productivity and Quality Goals

Establish productivity and quality goals and tie them to incentives. Goals can help your workers stay

focused, which can increase speed or eliminate errors. Goals should be specific and measurable,
such as increasing worker production by five units per day while maintaining a 98-percent quality
standard. Incentives for reaching the goals could include money, time off or recognition.

Implement Gradual Changes

If you need to make changes in your production processes, implement them gradually, such as
changing one aspect of the process at a time. Rapid wholesale changes may frustrate your
employees or cause them to fear that they won't be able to adapt. An abrupt change can also
significantly reduce productivity because of the effect of the learning curve