It is becoming more and more difficult to compete in the global marketplace that we all exist 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 making a superior item? For some people, it doesn’t matter, cheaper is better even if the part doesn’t last as long. It is strange and regrettable, but cheaper has become the catchphrase 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 make a first-rate, high quality part and to make it of high value to your buyers. The producers of the product do not decide what they makes’ worth; the buyer does. What is the customer willing to pay for your product and how big of a demand for your part is there? There are different ways to raise your profit for your product.
You can always elevate the price and pass it off to the customer. But there is a better way, a more long term approach that can raise profits and keep your company working lean and efficient. It all starts with eliminating unnecessary waste in all aspects of your business. Waste comes innumerous forms and it costs every company more revenue than they would care to confess. Waste is when workers are just standing around, but that doesn’t mean that there aren’t orders to be made. It mightmerely mean that they are waiting for parts to be finished in the electrical department or it could mean that they are waiting for product from a vendor. These are process issues that can directly influence the end product and the quantity that you can make. When employees are hanging around, inactive and waiting for the job to come to their work station, they are not useful. They are idle and are in effect just wasting money and time. It is the same when you have machines standing quiet. What is the point of having a fancy automated machine if it is not in use for hours a day? Would it be more cost effective to do the process by hand, sell the robot and buy a piece of machinery that will be more industrious? What about the room that the machine is filling, could another work area be put there and more jobs actually be finished without the robot? You can’t say that you don’t want to get rid of equipment because you might need it. If you are not using it or it is obsolete, then it is taking up room and not contributing to the expansion and profit of the company. It can be tricky to admit that buying that machine was a bad idea, but if it doesn’t work and doesn’t help grow the business, then it is time to push on and find something that does. It is called adapting and moving ahead.