It is getting more and more difficult to compete in the global marketplace that we all exist in. Whether you are building hair dryers or widgets, there is someone out there trying to build them cheaper and quicker than you. But the question is if they are making a superior item? For some people, it doesn’t matter, cheaper is good enough even if the part doesn’t last as long. It is bizarre and unfortunate, but cheaper has become the catchphrase and the word of choice for many buyers and organizations. Yes, cheaper is better, but less expensive doesn’t always work out for the best. So the object is to make a good, high value product and to make it of high worth to your customers. The makers of the parts do not decide what they makes’ value; the customer does. What is the buyer ready to pay for your part and how much of a demand for your part is there? There are different ways to increase your revenue for your goods.
You can always elevate the price and pass it off to the customer. But there is a better way, a more long term method that can raise earnings and keep your company running lean and efficient. It all begins with removing unnecessary waste in all aspects of your business. Waste comes in many forms and it costs every organization more revenue than they would care to admit. Waste is when employees are just hanging around, but that doesn’t mean that there aren’t orders to be made. It mightsimply mean that they are waiting for parts to be finished in the electrical department or it might mean that they are waiting for parts from a supplier. These are method issues that can directly affect the end product and how many you can produce. When employees are loafing around, idle and waiting for the work to come to their area, they are not productive. They are unused and are in effect merely wasting money and time. It is the same when you have machines sitting idle. What is the point of having a costly automated machine if it is not being run for hours a day? Would it be more cost effective to do the process by hand, sell the robot and buy a piece of machinery that will be more fruitful? What about the room that the machine is taking up, could another work station be put there and more jobs actually be done without the robot? You can’t say that you don’t want to get rid of parts because you might need it. If you are not using it or it is obsolete, then it is taking up room and not contributing to the development and profit of theorganization. It can be hard to admit that purchasing that equipment was a bad idea, but if it does not and doesn’t help build the business, then it is time to push on and realize something that does. It is named adapting and going forward.