Tag Archives: lean manufacturing
Understanding and managing product costs is one of the most challenging – and critical – responsibilities of small manufacturing business owners. This article offers common sense, achievable advice for taking control of costs and profitability. Continue reading
Most of us spend our lives growing into an ability to face reality, only to find out that reality isn’t all its cracked up to be. After all, it can’t take you anywhere else but here, can it? Continue reading
Supply Chain Management represents the best opportunity to maintain your footing in a difficult economy. Buyers have particular responsibility related to high volume/high profit potential products. If any product is responsible for a significant percentage of the firm or division’s profitability, it is not enough to make sure the product or its components arrive on time and are of acceptable quality. It is also important to understand the manufacturing process related to that product, the market conditions affecting the components of that product, and the vendor’s ability to manage those manufacturing and market conditions.
Beyond those obvious high-focus products, where is the next best place for a buyer to focus their attention? On products where the labor cost is a high percentage of total cost. Why is this so important? Because your opportunities to work on productivity improvements with vendors are very high on these products. Continue reading