It is becoming more and tougher to compete in the global marketplace that we all dwell in. Whether you are building 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 building a superior part? For some consumers, it doesn’t matter, cheaper is good enough even if the product doesn’t last as long. It is weird and unfortunate, but cheaper has become the catchphrase and the word of choice for many people and organizations. Yes, less expensive is better, but less expensive doesn’t necessarily work out for the best. So the object is to make a first-rate, high quality item and to make it of high value to your customers. The producers of the parts do not determine what they makes’ worth; the consumer does. What is the buyer prepared to pay for your part and how big of a demand for your part is there? There are different ways to increase your revenue for your product.
You can always elevate the price and pass it off to the customer. But there is a better way, a longer term approach that can increase revenue and keep your organization working lean and efficiently. It all begins with eliminating unnecessary waste in all areas of your business. Waste comes inlots of forms and it costs every company more money than they would care to disclose. Waste is when workers are just hanging around, but that does not mean that there aren’t orders to be built. It mightmerely mean that they are waiting for parts to be completed in the painting department or it could mean that they are waiting for parts from a vendor. These are procedure concerns that can directly affect the end product and how many you can produce. When workers are loafing around, inactive and waiting for the job to come to their work station, they are not productive. They are idle and are in effect simply wasting money and time. It is the same when you have machines being idle. What is the point of having a fancy automated machine if it is not being run for hours a day? Would it be more cost effective to do the job by hand, sell the robot and buy a piece of equipment that will be more productive? What about the room that the machine is filling, could another work station be put there and more work actually be finished without the equipment? You can’t say that you don’t want to do away with something because you may need it. If you are not utilizing it or it is outdated, then it is taking up room and not contributing to the expansion and profit of the company. It can be difficult 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 push forward and realize something that does. It is named adapting and moving forward.