It is getting much harder to compete in the global marketplace that we all exist in. Whether you are building hair dryers or widgets, there is somebody out there trying to build them less expensively and quicker than you. But the question is if they are producing a better item? 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 motto and the word of choice for many buyers and organizations. Yes, less expensive is better, but less expensive doesn’t necessarily work out for the best. So the object is to build a superior, high value item and to make it of high worth to your customers. The makers of the parts do not decide what they makes’ worth; the consumer does. What is the consumer willing to pay for your part and how big of a demand for your part is there? There are different ways to raise your earnings for your product.
You can always raise the price and pass it off to the customer. But there is a better way, a more long term approach that can raise earnings and keep your organization running lean and efficient. It all begins with eliminating unnecessary waste in all parts of your company. Waste comes in many forms and it costs every organization more money 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 filled. It might just mean that they are waiting for parts to be finished in the electrical department or it might mean that they are waiting for product from a vendor. These are process concerns that can directly affect the end product and the speed at which you can make. When workers are hanging around, idle and waiting for the job to come to their area, they are not producing. They are unused and are in essence merely wasting money and time. It is the same when you have machines sitting quiet. What is the point of having a expensive automated machine if it is not being run 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 equipment is filling, could another work station be put there and more work actually be finished without the equipment? You can’t say that you don’t want to get rid of something because you may need it. If you are not using it or it is old, then it is taking up valuable space and not contributing to the expansion and profit of thebusiness. It can be difficult to admit that getting that machine was a bad idea, but if it does not and doesn’t assit grow the company, then it is time to move on and discover something that does. It is named adapting and going forward.