It is getting more and more difficult to compete in the global marketplace that we all live in. Whether you are building hair dryers or widgets, there is somebody out there trying to produce them cheaper and faster than you. But the question is if they are producing a superior product? For some buyers, it doesn’t matter, cheaper is good enough 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 people and businesses. Yes, less expensive is better, but less expensive doesn’t necessarily work out for the best. So the object is to build a good, high value part and to make it of high worth to your potential customers. The makers of the product do not establish what they makes’ value; the buyer does. What is the buyer willing to pay for your part and how much of a demand for your part is there? There are different ways to increase your revenue for your goods.
You can always increase the price and pass it off to the buyer. But there is a better way, a longer term approach that can increase revenue and keep your organization running lean and efficiently. It all starts with removing unnecessary waste in all areas of your organization. Waste comes in many forms and it costs every business more cash than they would care to confess. Waste is when workers are just hanging around, but that doesn’t mean that there aren’t orders to be filled. 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 vendor. These are process concerns that can directly influence the end product and the speed at which you can make. When employees are loafing around, unused and waiting for the job to come to their area, they are not useful. They are unused and are in essence just wasting cash and time. It is the same when you have machines standing quiet. 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 process by hand, sell the robot and buy a piece of machinery that will be more productive? What about the room that the machine 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 do away with tools because you may want it. If you are not making use of it or it is outdated, then it is taking up valuable space and not contributing to the expansion and profit of theorganization. It can be uncomfortable to admit that purchasing 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 forward and realize something that does. It is called adapting and pushing ahead.