It is becoming more and harder to compete in the worldwide marketplace that we all exist in. Whether you are making hair dryers or widgets, there is someone out there trying to build them less expensively and quicker 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 item doesn’t last as long. It is bizarre and regrettable, but cheaper has become the catchphrase and the word of choice for many people and organizations. Yes, less expensive is better, but cheaper doesn’t necessarily work out for the best. So the goal is to make a superior, high quality item and to make it of high value to your potential customers. The builders of the parts do not determine what they makes’ worth; the customer does. What is the customer ready to pay for your item and how much of a demand for your product is there? There are different ways to raise your earnings for your product.
You can always increase the price and pass it off to the customer. But there is a better way, a more long term method that can raise revenue and keep your organization running lean and efficient. It all starts with removing unnecessary waste in all parts of your company. Waste comes in many 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 built. 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 parts from a vendor. These are process concerns that can directly influence the end product and how many you can produce. When workers are hanging around, unused and waiting for the job to come to their work station, they are not productive. They are under used and are in essence simply wasting cash and time. It is the same when you have machines sitting unused. What is the point of having a fancy automated machine if it is not in use for hours a day? Would it be more efficient to do the process by hand, sell the robot and purchase a piece of equipment that will be more productive? What about the room that the equipment is filling, could another work spot be put there and more work actually be done without the equipment? You can’t say that you don’t want to do away with parts because you might want it. If you are not utilizing it or it is obsolete, then it is taking up valuable space and not contributing to the development and profit of theorganization. It can be uncomfortable to admit that buying that robot was a bad idea, but if it doesn’t work and doesn’t help build the company, then it is time to push on and discover something that does. It is named adapting and pushing forward.