It is becoming more and harder to compete in the worldwide marketplace that we all exist in. Whether you are building hair dryers or widgets, there is someone out there trying to build them less expensively and quicker than you. But the question is if they are building a superior product? For some buyers, it doesn’t matter, cheaper is good enough even if the part doesn’t last as long. It is weird and unfortunate, but cheaper has become the catchphrase and the word of choice for many consumers and businesses. Yes, less expensive is better, but less expensive doesn’t always work out for the best. So the objective is to produce a first-rate, high quality part and to make it of high value to your potential customers. The producers of the product do not determine what they makes’ value; the buyer does. What is the buyer ready to pay for your part and how big of a demand for your part is there? There are different ways to increase your profit for your product.
You can always raise the price and pass it off to the buyer. But there is a better way, a more long term method that can raise profits and keep your company working lean and efficiently. It all starts with removing unnecessary waste in all parts of your organization. Waste comes innumerous forms and it costs every organization more money than they would care to confess. Waste is when workers are just standing around, but that doesn’t mean that there aren’t orders to be filled. It mightmerely mean that they are waiting for parts to be finished in the assembly department or it could mean that they are waiting for product from a supplier. These are method issues that can directly influence the end product and the speed at which you can make. When workers are sitting around, inactive and waiting for the work to come to their station, they are not useful. They are idle and are in effect simply wasting money and time. It is the same when you have machines being unused. What is the point of having a expensive automatic machine if it is not in use for hours a day? Would it be more efficient to do the job by hand, sell the machine and purchase a piece of equipment that will be more productive? What about the room that the machine is taking up, could another work area be put there and more work actually be completed without the equipment? You can’t say that you don’t want to get rid of tools because you might need it. If you are not making use of it or it is old, then it is taking up valuable space and not contributing to the development and profit of the company. It can be tricky to admit that getting that equipment was a bad idea, but if it does not and doesn’t help grow the business, then it is time to push on and find something that does. It is titles adapting and going forward.