It is becoming more and harder to compete in the worldwide marketplace that we all dwell in. Whether you are producing motorcycles or widgets, there is someone out there trying to produce them less expensively and faster 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 product doesn’t last as long. It is bizarre and unfortunate, but cheaper has become the slogan and the word of choice for many buyers and companies. Yes, less expensive is better, but cheaper doesn’t necessarily work out for the best. So the goal is to produce a first-rate, high quality item and to make it of high value to your customers. The makers of the items do not decide what they makes’ value; the buyer does. What is the consumer ready to pay for your part and how big of a demand for your part is there? There are different ways to increase your earnings for your product.
You can always elevate the price and pass it off to the consumer. But there is a better way, a more long term way that can increase revenue and keep your organization working lean and efficient. It all begins with removing unnecessary waste in all parts of your company. Waste comes innumerous forms and it costs every business more money than they would care to admit. Waste is when employees are just standing around, but that does not mean that there aren’t orders to be built. It might just mean that they are waiting for parts to be finished in the painting department or it might mean that they are waiting for product from a supplier. These are process problems that can directly have an effect on the end product and the speed at which you can make. When employees are sitting around, idle and waiting for the work to come to their work station, they are not producing. They are under used and are in effect simply wasting cash and time. It is the same when you have machines standing idle. What is the point of having a costly mechanized 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 machine and buy a piece of equipment that will be more productive? What about the space that the machine is taking up, could another work spot be put there and more work actually be done without the equipment? You can’t say that you don’t want to do away with equipment because you may need it. If you are not using it or it is obsolete, then it is taking up valuable space and not contributing to the expansion and profit of the company. It can be uncomfortable to admit that getting that robot was a bad idea, but if it does not and doesn’t help grow the business, then it is time to move forward and find something that does. It is named adapting and moving ahead.