It is becoming more and harder to compete in the global marketplace that we all exist in. Whether you are producing hair dryers 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 superior product? For some buyers, it doesn’t matter, cheaper is better even if the part doesn’t last as long. It is bizarre and regrettable, but cheaper has become the slogan and the word of choice for many buyers and businesses. Yes, less expensive is better, but less expensive doesn’t always work out for the best. So the objective is to build a first-rate, high quality product and to make it of high worth to your customers. The producers of the product do not determine what they makes’ worth; the buyer does. What is the buyer willing to pay for your part and how big of a demand for your item is there? There are different ways to raise 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 more long term method that can increase profits and keep your organization running lean and efficiently. It all starts with eliminating unnecessary waste in all areas of your company. Waste comes inlots of forms and it costs every business more revenue than they would care to disclose. Waste is when workers are just hanging around, but that doesn’t mean that there aren’t orders to be made. It might just mean that they are waiting for parts to be completed in the electrical department or it might mean that they are waiting for parts from a supplier. These are method problems that can directly affect the end product and the speed at which you can make. When workers are hanging around, idle and waiting for the job to come to their station, they are not productive. They are under used and are in effect just wasting cash and time. It is the same when you have machines sitting idle. What is the point of having a fancy automated machine if it is not being run for hours a day? Would it be more cost effective to do the job by hand, sell the machine and buy a piece of equipment that will be more productive? What about the room that the equipment is taking up, could another work spot 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 may need it. If you are not utilizing it or it is obsolete, then it is taking up valuable space and not contributing to the development and profit of the company. It can be hard to admit that purchasing that machine was a bad idea, but if it does not and doesn’t assit build the business, then it is time to push on and realize something that does. It is named adapting and pushing ahead.