It is getting much harder to compete in the worldwide marketplace that we all dwell in. Whether you are building cars or widgets, there is someone out there trying to make them cheaper and faster than you. But the question is if they are making a superior product? For some people, it doesn’t matter, cheaper is good enough even if the part doesn’t last as long. It is strange and regrettable, but cheaper has become the catchphrase and the word of choice for many consumers and organizations. Yes, cheaper is better, but cheaper doesn’t necessarily work out for the best. So the objective is to produce a first-rate, high value part and to make it of high value to your potential customers. The builders of the parts do not determine what they makes’ value; the consumer does. What is the buyer prepared to pay for your part and how much of a demand for your product is there? There are different ways to boost your revenue for your product.
You can always elevate the price and pass it off to the consumer. But there is a better way, a more long term approach that can increase earnings and keep your organization running lean and efficiently. It all starts with eliminating unnecessary waste in all aspects of your organization. Waste comes in many forms and it costs every company more cash than they would care to admit. Waste is when employees are just hanging around, but that doesn’t mean that there aren’t orders to be made. It might just mean that they are waiting for parts to be finished in the assembly department or it could mean that they are waiting for parts from a supplier. These are process issues that can directly influence the end product and the speed at which you can produce. When employees are loafing around, inactive and waiting for the job to come to their work station, they are not useful. They are idle and are in effect just 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 efficient to do the job by hand, sell the machine and purchase a piece of machinery that will be more industrious? What about the space that the machine is filling, could another work area be put there and more labor actually be completed without the machine? You can’t say that you don’t want to get rid of something because you may want it. If you are not utilizing it or it is outdated, then it is taking up space and not contributing to the growth and profit of theorganization. It can be difficult to admit that buying that robot was a bad idea, but if it doesn’t work and doesn’t assit grow the business, then it is time to push forward and realize something that does. It is called adapting and going forward.