Business efficiency needs to be at its highest otherwise things are going to look bleak. Too many businesses aren’t running to full capacity and are costing them dearly. However, a lean manufacturing might actually be the way to help boost inefficient businesses. This is all about focusing on the value rather than money solely.
The following is a very brief but simple lesson of lean manufacturing principles and hopefully they will be useful to you.
Understand What the Customer Believes Is Value
Customers have an idea of value from what they want and what they are ready to pay for also. If consumers don’t believe your products are worth their time or their needs then they will turn away. However, it can be quite difficult to get inside the head of a typical customer because everyone has different ideas or opinions of what they want. You have to understand and figure out what a customer wants.
There is always a reason behind why a person buys a certain type of Smartphone – they want all the nifty features – and the brand name doesn’t come into thinking. The reason is down to the fact that customers all want and need reliable internet connections and a portable device that will allow them to be free and not tied to one center point.
It’s the features that add the value and not the name; and what you have to do is to find out what adds the value to your product. Creativeness is always important because before you even attempt to create a product, you have to take the view of the customer and really delve deep and say without a shadow of doubt if the product is something they need. If not, it’s likely people won’t buy.
Value doesn’t come down to price alone. Expensive Smartphone’s may be flying off the shelf but so are the less costly ones and its all down to the reliability of the features and the needs of the customer. Name isn’t always a deciding factor not as long as the product offers what the customer needs.
Create Your Chain of Processing
There are different stages in which a product goes through before, during and after it is created and you need to really know each stage. Value can be added greatly through the way the products are processed. Let’s say the assembly of a product wasn’t offered and consumers had to go and construct whatever the item was, it would essentially make the item less value. However, if the process was reversed and the assembly was created before the customer received the product, there would be more value.
As confusing as it seems, it is very simple. So many things can add to the value to a product from a customer’s view and something as simple to putting together an item can add a great deal. Of course, you constantly have to review the process and what is adding or taking away from the value.
Efficiency Comes From the Value Adding Process
When there is a free flowing, flawless process the efficiency of your business can increase greatly. Usually things are a lot more productive when the value adding phases go without a hitch. However, it will still be important to take the time to analyze and review the process from time to time. This will allow you to see which areas are strong and which are lagging behind.
Keep Inventory to the Bare Minimum
You need to still keep records for all sorts of reasons; however, you don’t need to keep things which aren’t necessary. It isn’t really important to keep old blueprints of production lines when they haven’t been used for years. However, you should keep what is really necessary and ensure everything is in good order so that when it comes the time to reorder items, it can be a lot simpler to do so.
Always Look To Become Perfect
Unfortunately nothing is perfect in life but you can do your best to come as close to it as humanly possible! Whenever the employees aren’t involved with the production process, things go wrong because accidents happen and people don’t know what they’re doing. However having employees involved in almost all areas can be very useful to cut and reduce waste.
Your employees should be aware there is a host of ways to waste products and that of course means money. Money can be lost when items are damaged in transportation and when items aren’t handled carefully. Problems can also occur when there is an oversight in the production and more stock is produced than needed or when errors are allowed to happen.
Investing Is Crucial
You really need to consider investing in the business once again in order to actually increase or enhance efficiency. If you have the capital you can potentially put money into building or adapting the facilities on offer as well as update equipment and implementing new procedures also. It might seem a little drastic however, at times it is necessary to make changes and sometimes entire restructuring is necessary. This is the lean.
However, you don’t actually require a great deal of cash to make this a success. There are lots of lean businesses which are able to see better efficiency; there is a reduction of capital required as well as less staff in certain areas. You can even stop putting money into certain products which aren’t selling or isn’t generating enough profit.
Planning is of course crucial for success and you need to ensure you plan out carefully before taking any major steps forward.