It is becoming much more difficult to compete in the worldwide marketplace that we all dwell in. Whether you are building hair dryers or widgets, there is somebody out there trying to make them cheaper and faster than you. But the question is if they are making a better part? For some people, it doesn’t matter, cheaper is good enough even if the part doesn’t last as long. It is bizarre and unfortunate, but cheaper has become the motto and the word of choice for many buyers and businesses. Yes, less expensive is better, but cheaper doesn’t necessarily work out for the best. So the objective is to make a first-rate, high quality product and to make it of high worth to your buyers. The makers of the parts do not establish what they makes’ worth; the buyer does. What is the consumer ready to pay for your product and how big of a demand for your product is there? There are different ways to increase your revenue 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 approach that can increase revenue and keep your organization running lean and efficiently. It all starts with eliminating 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 disclose. Waste is when employees are just standing around, but that does not mean that there aren’t orders to be made. It mightmerely mean that they are waiting for parts to be completed in the assembly department or it might mean that they are waiting for product from a supplier. These are process problems that can directly influence the end product and the speed at which you can make. When employees are hanging around, inactive and waiting for the work to come to their work station, they are not producing. They are idle and are in effect just wasting cash and time. It is the same when you have machines standing unused. What is the point of having a fancy mechanized 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 purchase a piece of machinery that will be more fruitful? What about the space that the machine is taking up, could another work spot be put there and more labor actually be finished 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 If you are not making use of it or it is obsolete, then it is taking up room and not contributing to the growth and profit of thebusiness. It can be hard to admit that getting that machine was a bad idea, but if it does not and doesn’t help build the company, then it is time to move forward and discover something that does. It is called adapting and going ahead.