It is getting much harder to compete in the worldwide marketplace that we all exist in. Whether you are making motorcycles or widgets, there is someone out there trying to build them cheaper and quicker than you. But the question is if they are producing a better product? For some people, it doesn’t matter, cheaper is better even if the product doesn’t last as long. It is weird and regrettable, but cheaper has become the motto and the word of choice for many consumers and companies. Yes, less expensive is better, but less expensive doesn’t always work out for the best. So the objective is to make a first-rate, high value part and to make it of high value to your buyers. The makers of the product do not determine what they makes’ value; the consumer 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 boost your earnings for your product.
You can always elevate the price and pass it off to the buyer. But there is a better way, a longer term way that can raise revenue and keep your company running lean and efficiently. It all starts with eliminating unnecessary waste in all areas of your company. Waste comes inlots of forms and it costs every company more money than they would care to admit. Waste is when employees are just standing 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 completed in the painting department or it might mean that they are waiting for parts from a supplier. These are procedure issues that can directly have an effect on the end product and the quantity that you can make. When employees are hanging around, idle and waiting for the work to come to their station, they are not useful. They are unused and are in essence just wasting money and time. It is the same when you have machines sitting quiet. What is the point of having a costly automated machine if it is not being run 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 productive? What about the room that the machine is filling, could another work spot be put there and more work actually be done without the machine? You can’t say that you don’t want to get rid of parts because you might want it. If you are not using it or it is old, then it is taking up valuable space and not contributing to the development and profit of the company. It can be tricky to admit that getting that equipment was a bad idea, but if it does not and doesn’t help build the company, then it is time to push on and find something that does. It is named adapting and moving ahead.