It is becoming more and harder to compete in the global marketplace that we all live in. Whether you are building baseball bats or widgets, there is somebody out there trying to produce them less expensively and quicker than you. But the question is if they are making a superior part? For some people, it doesn’t matter, cheaper is good enough even if the product doesn’t last as long. It is bizarre and unfortunate, but cheaper has become the motto and the word of choice for many people and businesses. Yes, less expensive is better, but cheaper doesn’t necessarily work out for the best. So the goal is to build a superior, high value part and to make it of high worth to your customers. The producers of the parts do not decide what they makes’ worth; the customer does. What is the customer willing to pay for your product and how much of a demand for your part is there? There are different ways to raise your revenue for your product.
You can always increase the price and pass it off to the buyer. But there is a better way, a more long term approach that can boost profits and keep your company working lean and efficient. It all begins with removing unnecessary waste in all parts of your business. Waste comes inlots of forms and it costs every business more money than they would care to disclose. Waste is when workers are just standing around, but that doesn’t mean that there aren’t orders to be filled. It might just mean that they are waiting for parts to be completed in the electrical department or it could mean that they are waiting for parts from a supplier. These are method concerns that can directly affect the end product and how many you can make. When workers are loafing around, unused and waiting for the work to come to their area, they are not producing. They are idle and are in effect just wasting money and time. It is the same when you have machines being unused. What is the point of having a fancy automatic 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 machine and buy a piece of machinery that will be more industrious? What about the room that the equipment is filling, could another work station be put there and more jobs actually be finished without the machine? You can’t say that you don’t want to get rid of equipment because you may 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 If you are not using it or it is outdated, then it is taking up room and not contributing to the growth and profit of thefirm.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 hard to admit that getting that machine was a bad idea, but if it doesn’t work and doesn’t assit build the company, then it is time to move on and discover something that does. It is named adapting and going forward.