It is getting more and harder to compete in the worldwide marketplace that we all exist in. Whether you are producing motorcycles or widgets, there is someone out there trying to build them cheaper and faster than you. But the question is if they are making a superior part? For some people, it doesn’t matter, cheaper is better even if the part doesn’t last as long. It is strange and unfortunate, but cheaper has become the slogan and the word of choice for many buyers and companies. Yes, cheaper is better, but cheaper doesn’t always work out for the best. So the object is to make a good, high quality item and to make it of high value to your customers. The builders of the product do not determine what they makes’ worth; the customer does. What is the customer ready to pay for your part and how much of a demand for your item is there? There are different ways to increase your profit for your product.
You can always raise the price and pass it off to the consumer. But there is a better way, a more long term way that can increase profits and keep your business working lean and efficient. It all starts with removing unnecessary waste in all parts of your business. Waste comes innumerous forms and it costs every organization more money than they would care to admit. Waste is when employees are just hanging around, but that does not mean that there aren’t orders to be filled. It mightsimply mean that they are waiting for parts to be completed in the assembly department or it could mean that they are waiting for product from a vendor. These are process problems 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 useful. They are unused and are in effect simply wasting money and time. It is the same when you have machines sitting idle. 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 process by hand, sell the machine and purchase a piece of equipment that will be more industrious? What about the room that the machine is taking up, could another work station be put there and more work actually be finished without the robot? You can’t say that you don’t want to get rid of equipment because you may want it. If you are not making use of it or it is obsolete, then it is taking up room and not contributing to the development and profit of theorganization. It can be tricky to admit that getting that robot was a bad idea, but if it doesn’t work and doesn’t help grow the company, then it is time to move on and find something that does. It is called adapting and going forward.