It is getting much tougher to compete in the worldwide marketplace that we all live in. Whether you are making motorcycles or widgets, there is somebody out there trying to produce them less expensively and faster than you. But the question is if they are making a superior part? For some consumers, it doesn’t matter, cheaper is good enough even if the part doesn’t last as long. It is bizarre and unfortunate, but cheaper has become the slogan and the word of choice for many buyers and businesses. Yes, cheaper is better, but cheaper doesn’t necessarily work out for the best. So the object is to produce a first-rate, high quality part and to make it of high value to your customers. The builders of the product do not establish what they makes’ worth; the buyer does. What is the customer willing to pay for your item and how much of a demand for your product is there? There are different ways to raise your profit 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 approach that can boost profits and keep your company working lean and efficiently. It all starts with removing unnecessary waste in all areas of your company. Waste comes innumerous 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 built. It might just mean that they are waiting for parts to be finished in the electrical department or it might mean that they are waiting for product from a supplier. These are process concerns that can directly affect the end product and how many you can make. When workers are loafing around, inactive and waiting for the job to come to their station, they are not useful. They are idle and are in effect simply wasting money and time. It is the same when you have machines being quiet. What is the point of having a costly automated 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 purchase a piece of equipment that will be more fruitful? What about the room that the equipment is taking up, could another work spot be put there and more jobs actually be completed without the robot? You can’t say that you don’t want to do away with equipment because you might need it. If you are not making use of it or it is old, then it is taking up valuable space and not contributing to the development and profit of the company. It can be hard to admit that buying that machine was a bad idea, but if it does not and doesn’t help grow the business, then it is time to push on and find something that does. It is named adapting and going ahead.