It is getting more and harder to compete in the global marketplace that we all dwell in. Whether you are producing hair dryers or widgets, there is someone out there trying to make them cheaper and quicker than you. But the question is if they are producing a better product? For some consumers, 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 motto and the word of choice for many people and organizations. Yes, cheaper is better, but less expensive doesn’t necessarily work out for the best. So the objective is to make a superior, high quality part and to make it of high value to your potential customers. The producers of the items do not determine what they makes’ value; the consumer does. What is the buyer willing to pay for your part and how much of a demand for your product is there? There are different ways to boost your profit for your product.
You can always raise the price and pass it off to the consumer. But there is a better way, a longer term method that can increase revenue and keep your company running lean and efficient. It all begins with eliminating unnecessary waste in all aspects of your business. Waste comes innumerous forms and it costs every company more money than they would care to admit. Waste is when workers are just hanging around, but that does not mean that there aren’t orders to be made. It might just mean that they are waiting for parts to be completed in the assembly department or it could mean that they are waiting for parts from a supplier. These are process issues that can directly have an effect on the end product and the quantity that you can make. When workers are hanging around, inactive and waiting for the work to come to their area, they are not productive. They are unused and are in essence simply wasting money and time. It is the same when you have machines standing quiet. What is the point of having a expensive automated 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 purchase a piece of machinery that will be more productive? What about the room that the equipment is taking up, could another work spot be put there and more work actually be completed without the robot? You can’t say that you don’t want to do away with tools because you might want it. If you are not making use of it or it is obsolete, then it is taking up room and not contributing to the development and profit of theorganization. It can be uncomfortable to admit that getting that machine was a bad idea, but if it doesn’t work and doesn’t help grow the business, then it is time to move forward and discover something that does. It is called adapting and pushing forward.