How One Manufacturer Cut Costs & Increased Revenue—With the Same Production Output
- Matt Ulepic
- Mar 20
- 4 min read
At Machine Tracking, we talk to manufacturers every day about their production data. Many times, these conversations start with hesitation, skepticism, or even frustration. Customers often focus on the challenges—why they aren’t seeing the improvements they expected, why their team isn’t acting on the data, or why they feel stuck in the same operational patterns. But every so often, we have a conversation that completely flips the script.
One recent discussion with a long-time Machine Tracking customer was different. Instead of focusing on limitations, they shared a powerful success story that demonstrated the real impact of tracking machine uptime and utilization over time.
Tracking Machine Uptime Over Time
This customer had been using Machine Tracking real-time monitoring devices for just over a year. This meant they could now compare their current uptime performance against the same month from the previous year.
When we started the conversation, they shared something that initially made me pause.
“This past February, our machine uptime was significantly lower than in February 2024.”
Lower uptime isn’t exactly what I was hoping to hear. My first thought was that something had gone wrong—maybe demand was down, maybe they were struggling with equipment issues, or perhaps the team wasn’t utilizing the data as effectively as before.
Then they continued.
“But we produced the same number of parts as last year.”
That was interesting, but I still wasn’t sure where this was going. Same output with lower machine uptime? Not necessarily bad, but not groundbreaking either.
Then I asked, “How did your labor hours compare?”
“We reduced labor hours by 25%.”
Now I was paying attention.
Then came the real kicker.
“And our revenue is up 15%.”
Optimizing Production Efficiency
Let’s break this down.
In just one year, this manufacturer was able to:
Maintain the same production output
Reduce labor hours by 25%
Decrease machine uptime (but not productivity!)
Increase revenue by 15%
This isn’t just a minor efficiency gain—this is a complete shift in the cost structure of their production. They weren’t just running machines less; they were producing more efficiently.
I asked them how they achieved this transformation, and their answer was surprisingly simple.
“We stopped trying to make every machine do everything.”
The Problem with a ‘Universal’ Production Approach
Before implementing Machine Tracking, this manufacturer had designed their production line with a one-size-fits-all mentality—meaning that every machine was capable of running every product line. At first glance, this might seem like a logical approach. It offers flexibility, redundancy, and the ability to shift workloads as needed.
However, what they found was that this approach actually introduced massive inefficiencies.
Machines that were great at certain processes were being underutilized because they were running lower-priority products.
Training operators on multiple machines and processes created unnecessary complexity.
Changeovers took longer because machines were frequently being reconfigured for different product runs.
The production process was ultimately designed around the lowest common denominator—meaning that everything had to be set up in a way that worked for all machines, rather than optimizing for the right tool for the job.
How They Used Data to Optimize Their Operations
Once they had a year’s worth of real-time machine data, they started specializing their machines for specific product lines.
Instead of trying to enable every machine to produce every product, they restructured their workflow to: ✅ Assign high-speed machines to the products they were best at producing ✅ Dedicate certain machines to high-precision work, reducing setup time ✅ Shift labor resources to where they were most effective, eliminating unnecessary machine idle time ✅ Reduce overall downtime by minimizing frequent changeovers and unnecessary complexity
The result? A more streamlined, cost-effective, and higher-margin production process.
Why This Matters for Other Manufacturers
Many manufacturers fall into the same trap: maximizing machine utilization at the expense of efficiency.
But more uptime doesn’t always mean better productivity.
If machines are running inefficiently, if they’re doing unnecessary work, or if operators are stretched across too many processes, your overall costs increase—even if output stays the same.
By tracking real-time machine data and using it to make strategic production decisions, manufacturers can:
Reduce waste in labor and machine time
Lower production costs while maintaining (or increasing) output
Improve margins by optimizing the way work gets done
This customer’s success wasn’t about just using machine tracking—it was about using the data to rethink their entire approach to production. Ultimately this manufacturer cut costs and increased revenue.
Are You Tracking the Right Metrics?
Many manufacturers focus on “Are my machines running?” when they should be asking “Are my machines running as efficiently as possible?”
There’s a big difference between: ❌ Trying to maximize uptime at all costs and ✅ Using uptime strategically to optimize output
If your production line is built around the lowest common denominator, you may be leaving efficiency gains—and profit—on the table.
The Power of Machine Data: Manufacturer Cut Costs & Increased Revenue
This manufacturer’s success story proves an important point: machine tracking isn’t just about seeing when machines are running—it’s about using that data to drive better decision-making.
If you’re only looking at uptime as a number, you might be missing the bigger picture. The real value of machine tracking comes from understanding how production works and how to make it better.
So, here’s my question for you: Are you tracking uptime, or are you optimizing it?
If you’re ready to take a deeper look at your production data, reach out. Let’s talk about how Machine Tracking can help you uncover hidden efficiencies and drive real business results.