It is getting much tougher to compete in the worldwide marketplace that we all exist in. Whether you are making baseball bats or widgets, there is someone out there trying to make them less expensively and faster than you. But the question is if they are making a superior part? For some people, it doesn’t matter, cheaper is good enough even if the part doesn’t last as long. It is strange 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 make a superior, high value item and to make it of high value to your potential customers. The makers of the product do not decide what they makes’ value; the customer does. What is the buyer prepared to pay for your part and how much of a demand for your product is there? There are different ways to raise your revenue for your product.
You can always elevate the price and pass it off to the consumer. But there is a better way, a more long term way that can boost profits and keep your company operating lean and efficient. It all starts with removing unnecessary waste in all areas of your company. Waste comes innumerous forms and it costs every company more revenue than they would care to admit. Waste is when employees are just hanging around, but that does not mean that there aren’t orders to be filled. It mightsimply mean that they are waiting for parts to be completed in the painting department or it could mean that they are waiting for parts from a supplier. These are process concerns that can directly have an effect on the end product and how many you can produce. When employees are hanging around, idle and waiting for the work to come to their area, they are not productive. They are idle and are in essence merely wasting money and time. It is the same when you have machines standing idle. What is the point of having a costly mechanized machine if it is not in use for hours a day? Would it be more cost effective to do the job by hand, sell the robot and buy a piece of equipment that will be more industrious? What about the area that the equipment is taking up, could another work area be put there and more jobs actually be completed without the robot? You can’t say that you don’t want to get rid of parts because you may want it. If you are not making use of it or it is old, then it is taking up space and not contributing to the growth and profit of theorganization. It can be difficult to admit that purchasing that robot was a bad idea, but if it does not and doesn’t help grow the company, then it is time to move forward and realize something that does. It is named adapting and moving forward.