It is getting much harder to compete in the worldwide marketplace that we all dwell in. Whether you are producing baseball bats or widgets, there is someone out there trying to build them less expensively and quicker than you. But the question is if they are building a superior item? For some buyers, it doesn’t matter, cheaper is better even if the item doesn’t last as long. It is bizarre and regrettable, but cheaper has become the catchphrase and the word of choice for many buyers and organizations. Yes, cheaper is better, but cheaper doesn’t necessarily work out for the best. So the objective is to build a superior, high quality item and to make it of high value to your potential customers. The producers of the product do not determine what they makes’ value; the customer does. What is the consumer ready to pay for your service and how big of a demand for your product is there? There are different ways to boost your profit for your product.
You can always elevate the price and pass it off to the customer. But there is a better way, a more long term way that can raise revenue and keep your business running lean and efficient. It all starts with removing unnecessary waste in all parts of your company. Waste comes inlots of forms and it costs every organization more money than they would care to confess. Waste is when workers are just hanging around, but that does not mean that there aren’t orders to be filled. 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 affect the end product and the speed at which you can produce. When employees are hanging around, unused and waiting for the job to come to their work station, they are not productive. They are unused and are in essence just wasting money and time. It is the same when you have machines standing quiet. What is the point of having a costly automatic machine if it is not in use for hours a day? Would it be more cost effective to do the job by hand, sell the machine and purchase a piece of machinery that will be more productive? What about the room that the equipment is taking up, could another work area be put there and more work actually be completed without the robot? You can’t say that you don’t want to get rid of equipment because you might want it. If you are not using it or it is old, then it is taking up room and not contributing to the development and profit of the company. It can be uncomfortable to admit that getting that robot was a bad idea, but if it doesn’t work and doesn’t help build the business, then it is time to move on and realize something that does. It is titles adapting and moving forward.