It is getting much tougher to compete in the global marketplace that we all live in. Whether you are producing hair dryers or widgets, there is somebody out there trying to build them less expensively and faster than you. But the question is if they are building a better product? For some buyers, it doesn’t matter, cheaper is better even if the part doesn’t last as long. It is bizarre and regrettable, but cheaper has become the slogan and the word of choice for many people and organizations. Yes, cheaper is better, but less expensive doesn’t necessarily work out for the best. So the goal is to build a first-rate, high value item and to make it of high value to your buyers. The builders of the parts do not establish what they makes’ value; the buyer does. What is the buyer prepared to pay for your product and how big of a demand for your part 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 method that can boost earnings and keep your business operating lean and efficient. It all starts with eliminating unnecessary waste in all parts of your organization. Waste comes in many forms and it costs every company more money than they would care to confess. Waste is when employees are just hanging around, but that doesn’t mean that there aren’t orders to be filled. It mightmerely 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 vendor. These are process concerns that can directly influence 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 productive. They are under used and are in effect just wasting cash and time. It is the same when you have machines standing idle. What is the point of having a costly automatic machine if it is not being used for hours a day? Would it be more efficient to do the job by hand, sell the machine and purchase a piece of equipment that will be more productive? What about the space that the equipment is filling, could another work area be put there and more jobs actually be completed without the equipment? You can’t say that you don’t want to get rid of tools 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 growth and profit of the company. It can be uncomfortable to admit that buying that equipment was a bad idea, but if it does not and doesn’t assit grow the company, then it is time to push forward and find something that does. It is named adapting and pushing forward.