It is getting much harder to compete in the global marketplace that we all exist in. Whether you are producing hair dryers or widgets, there is someone out there trying to produce them less expensively and quicker than you. But the question is if they are building a superior item? For some consumers, it doesn’t matter, cheaper is better even if the product doesn’t last as long. It is weird and regrettable, but cheaper has become the catchphrase and the word of choice for many people and companies. Yes, cheaper is better, but cheaper doesn’t always work out for the best. So the objective is to make a superior, high value part and to make it of high worth to your customers. The builders of the parts do not determine what they makes’ value; the consumer does. What is the customer ready to pay for your service and how big of a demand for your part is there? There are different ways to raise your earnings for your product.
You can always increase the price and pass it off to the buyer. But there is a better way, a more long term approach that can increase earnings and keep your company operating lean and efficiently. It all starts with removing unnecessary waste in all areas of your organization. Waste comes inlots of 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 built. It mightsimply mean that they are waiting for parts to be finished in the painting department or it could mean that they are waiting for parts from a supplier. These are method problems that can directly affect the end product and how many you can make. When employees are loafing around, unused and waiting for the work to come to their work 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 quiet. What is the point of having a expensive automatic machine if it is not being run for hours a day? Would it be more efficient to do the process by hand, sell the robot and buy a piece of equipment that will be more industrious? What about the space that the machine is filling, could another work area be put there and more jobs actually be done without the machine? 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 If you are not making use of it or it is outdated, then it is taking up valuable space and not contributing to the development and profit of thebusiness. It can be hard to admit that getting that robot was a bad idea, but if it does not and doesn’t assit grow the company, then it is time to move on and realize something that does. It is called adapting and going forward.