Back to Basics: How Operational Excellence Can Help You Tackle Rising Costs

industrial manufacturing operations

Whether You’re Dealing with Material Cost Volatility or Productivity Challenges, the Discipline of Operational Excellence Still Applies—and It Works

Rising operational costs—from raw materials to labor and energy—are squeezing manufacturers across Wisconsin. While you may not be able to control external market conditions, you can take control of your internal operations. “There are many factors that contribute to operational costs,” says Beth Aldana, WMEP’s Operational Excellence Services Leader. “That’s where operational excellence becomes so powerful—the tools, processes, and discipline help you manage the cost drivers inside your four walls.”

Cut Waste, Not Just Costs

When margins are under pressure, the instinct is often to cut costs quickly. But Beth cautions that short-term fixes—like slashing spending or negotiating harder with suppliers—often miss the real opportunity. “Instead of looking only at what you’re spending, look at how you’re working,” she says. “Where are the inefficiencies? Where’s the waste?” That’s where foundational Lean principles can deliver results. Beth emphasizes that you don’t need to overhaul everything to make progress. “Start with the basics. Eliminate waste. Stabilize processes. Improve flow. These small steps build toward big gains.”

Understand Problems Before You Solve Them

Before you take action, you need to know where the real problems lie. A process assessment, structured problem-solving tool, or value stream map can help you pinpoint the highest-impact areas. “So many companies jump to solutions without understanding the root issue,” Beth explains. “You have to scope the problem, define success, and track progress. That’s how you make improvements that last.” Even simple diagnostic tools can reveal hidden costs and inefficiencies or highlight opportunities where automation could make a process safer and more efficient. “It’s about getting clarity and a plan before you act,” Beth says.

Operational Excellence Is a Team Sport

Operational excellence isn’t just a leadership initiative—it’s a team effort. Beth recommends bringing frontline employees into the improvement process. “They see the problems every day,” she says. “And when you engage them in the solutions, you not only get better ideas—you build morale and retention at the same time.” She adds: “You’re not asking them to do extra work. You’re giving them a voice to make their work easier, safer, and more effective.”

Return to Operational Discipline—And Watch the Costs Fall

When cost pressures bring every dollar under scrutiny, pulling people off the shop floor to hold a continuous improvement workshop can seem like a luxury or a distraction. But Beth sees it differently. “Lean is one of the best cost-control tools you have,” she says. “When you reduce rework, improve flow, and free capacity, it adds up fast.” Investing in operational excellence isn’t just the right move—it’s one that delivers measurable returns.

WMEP is a nonprofit consulting organization with a simple mission: help Wisconsin manufacturers succeed. Our advisors bring real-world industry experience and deliver practical solutions across three key focus areas: Growth, Operations, and People. Contact us to talk about how Operational Excellence can help you manage operational costs, eliminate waste, and improve productivity.

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