It is getting much harder to compete in the global marketplace that we all exist in. Whether you are making hair dryers or widgets, there is someone out there trying to produce them less expensively and quicker than you. But the question is if they are building a better part? For some buyers, it doesn’t matter, cheaper is better even if the product doesn’t last as long. It is strange and unfortunate, but cheaper has become the motto and the word of choice for many people and organizations. Yes, less expensive is better, but cheaper doesn’t always work out for the best. So the goal is to produce a first-rate, high quality part and to make it of high worth to your buyers. The producers of the items do not determine what they makes’ value; the buyer does. What is the customer ready to pay for your service and how big of a demand for your part is there? There are different ways to increase 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 longer term method that can raise revenue and keep your organization running lean and efficient. It all begins with eliminating unnecessary waste in all parts of your company. Waste comes inlots of forms and it costs every organization more revenue than they would care to admit. Waste is when workers 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 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 employees are hanging around, inactive and waiting for the job to come to their area, they are not productive. They are unused and are in effect just wasting money and time. It is the same when you have machines being quiet. What is the point of having a expensive automated machine if it is not being used for hours a day? Would it be more cost effective to do the process by hand, sell the robot and buy a piece of equipment that will be more industrious? What about the space that the equipment is taking up, could another work station 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 parts because you might need it. If you are not using it or it is outdated, then it is taking up room and not contributing to the growth and profit of thefirm. It can be difficult to admit that buying that equipment was a bad idea, but if it does not and doesn’t assit build the business, then it is time to move on and find something that does. It is called adapting and going forward.