Mar 07 2010
How Lean Can Benefit a Woodworking Shop
Everyone has felt the effects from the economic downturn over the past several months. Sales are down, income has been lost, profits have been reduced, and efficiency has been negatively impacted; resulting in increased operating costs. So the question becomes, what can be done to at least partially offset these economic issues? More importantly, what can be done to make my business even stronger once the economy improves? Well, most people understand that the key to survival and to building a stronger business is to develop and strengthen a loyal customer base. However, in order to do this, we must first understand exactly what our customers want, and additionally, we must understand what motivates them to want to do business with us. Think about it for a minute. When a customer buys a product, what do they want? They want the same thing we want when we buy something: quality (no errors), speed (on-time delivery), and reasonable prices (lowest possible cost). To be successful, it is important that businesses recognize that low quality (items with defects which need to be repaired, or "reworks") and slow speed (product throughput or exit rate) are elements that make products more expensive. Note that these problems are contrary to customer expectations, and affect our ability to attract and retain long-term customers and to make a profit. So how do you achieve high quality, on-time delivery and low cost?
