It is getting more and harder to compete in the global marketplace that we all exist in. Whether you are producing baseball bats or widgets, there is somebody out there trying to make them less expensively and quicker than you. But the question is if they are making a superior part? For some consumers, it doesn’t matter, cheaper is better even if the item doesn’t last as long. It is strange and regrettable, but cheaper has become the slogan and the word of choice for many people and organizations. Yes, cheaper is better, but cheaper doesn’t necessarily work out for the best. So the object is to make a good, high value item and to make it of high value to your potential customers. The producers of the items do not decide what they makes’ value; the customer does. What is the consumer willing to pay for your service and how big of a demand for your part is there? There are different ways to increase your revenue for your goods.
You can always elevate the price and pass it off to the buyer. But there is a better way, a more long term approach that can increase revenue and keep your company operating lean and efficiently. It all starts with eliminating unnecessary waste in all aspects of your company. Waste comes innumerous forms and it costs every organization more money than they would care to confess. Waste is when employees are just standing around, but that doesn’t mean that there aren’t orders to be made. It mightmerely mean that they are waiting for parts to be finished in the painting department or it could mean that they are waiting for parts from a supplier. These are method concerns that can directly have an effect on the end product and how many you can make. When employees are hanging around, inactive and waiting for the work to come to their area, they are not producing. They are unused and are in essence simply wasting cash and time. It is the same when you have machines standing quiet. What is the point of having a costly automated machine if it is not being used 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 equipment is filling, could another work spot be put there and more jobs actually be completed without the machine? You can’t say that you don’t want to get rid of tools because you might need it. If you are not utilizing it or it is outdated, then it is taking up valuable space and not contributing to the growth and profit of theorganization. It can be tricky to admit that buying that equipment was a bad idea, but if it does not and doesn’t help build the business, then it is time to push forward and find something that does. It is called adapting and moving forward.