It is becoming much harder to compete in the global marketplace that we all dwell in. Whether you are producing motorcycles or widgets, there is somebody out there trying to make them cheaper and quicker than you. But the question is if they are making a better product? For some people, it doesn’t matter, cheaper is good enough even if the part doesn’t last as long. It is strange and regrettable, but cheaper has become the catchphrase and the word of choice for many people and organizations. Yes, cheaper is better, but cheaper doesn’t always work out for the best. So the object is to build a superior, high quality product and to make it of high value to your clients. The builders of the items do not decide what they makes’ worth; the buyer does. What is the customer willing to pay for your part and how big of a demand for your item is there? There are different ways to increase your profit for your product.
You can always elevate the price and pass it off to the buyer. But there is a better way, a longer term way that can boost profits and keep your company working lean and efficiently. It all begins with eliminating unnecessary waste in all parts of your business. Waste comes in many forms and it costs every company more revenue than they would care to admit. Waste is when workers 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 finished in the electrical department or it could mean that they are waiting for product from a vendor. These are process issues that can directly influence the end product and the speed at which you can make. When workers are hanging around, unused and waiting for the work to come to their work station, they are not productive. They are idle and are in essence just wasting money and time. It is the same when you have machines standing quiet. What is the point of having a fancy automated machine if it is not in use for hours a day? Would it be more efficient to do the process by hand, sell the machine and buy a piece of equipment that will be more productive? What about the space that the machine is filling, could another work station be put there and more jobs actually be completed without the equipment? You can’t say that you don’t want to do away with tools because you may need it. If you are not using it or it is outdated, then it is taking up room and not contributing to the growth and profit of the company. It can be tricky to admit that getting that robot was a bad idea, but if it doesn’t work and doesn’t assit grow the company, then it is time to move on and find something that does. It is called adapting and moving ahead.