It is becoming much tougher to compete in the global marketplace that we all live in. Whether you are producing cars or widgets, there is somebody out there trying to build them cheaper and quicker than you. But the question is if they are producing a better part? For some consumers, it doesn’t matter, cheaper is good enough even if the part doesn’t last as long. It is bizarre and regrettable, 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 object is to produce a first-rate, 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 consumer does. What is the buyer ready to pay for your part and how much of a demand for your product is there? There are different ways to boost your earnings for your product.
You can always increase the price and pass it off to the customer. But there is a better way, a more long term way that can boost earnings and keep your organization operating lean and efficiently. It all begins with removing unnecessary waste in all parts of your company. Waste comes in many forms and it costs every organization more money 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 completed in the painting department or it might mean that they are waiting for parts from a supplier. These are procedure issues that can directly affect the end product and the speed at which you can make. When employees are hanging around, inactive and waiting for the work to come to their station, they are not productive. They are idle and are in essence merely wasting cash and time. It is the same when you have machines standing unused. What is the point of having a costly mechanized 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 industrious? What about the room that the equipment is taking up, could another work station be put there and more labor actually be done without the machine? You can’t say that you don’t want to get rid of something because you might want it. If you are not using it or it is old, then it is taking up space and not contributing to the growth and profit of theorganization. It can be uncomfortable 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 find something that does. It is called adapting and going ahead.