How to remain competitive as a manufacturer in the USA.

September 13, 2011 at 9:37 am Leave a comment

In order to survive today, companies must respond to the cost pressures of globalization by producing more economically and more efficiently than ever. Domestic bedding manufacturers can survive only if they take the right steps to refine their processes and sharpen their business focus. That is the view held by most manufacturing experts. It is said that today’s factory has to focus on what it does best. Products need to be made resourcefully and need to be differentiated from that of the competition. This must include the development of products and processes with the customer experience in mind. Eliminate waste, create efficiency…these four words describe the foundation of efficient operations. Some waste exists in every system. From manufacturing and assembly, to supply chain and customer service, some waste is hidden within all processes. The need for an operations strategy that reflects and supports the corporate strategy is crucial for the success of the company. Many US manufacturing operations have included as part of their strategy Lean Six Sigma initiatives which are the most widely recognized approach to defining, measuring, analyzing, improving and controlling processes and product costs to drive out waste and improve and sustain efficiency. Product costs are controlled by three elements: material, labor and overhead.

Although, in most cases, material costs make up by far the largest portion of costs, followed by labor and overhead, each has a strong influence on the other. For example, a company can have the lowest material costs in the country by way of the best performing supply chain, but if the product is manufactured using inefficient processes, or no process is in place to monitor and control labor, cost can creep above that of the competition. The positive connection between the five elements can be explained in the captioned principles.

Over the next several weeks, I’ll be expanding on the strategies for remaining competitive as a manufacturer in the United States.


Entry filed under: Customer Loyalty, Dan Trojacek, Eco-Friendly, Empoyee Satisfaction, Environmently Friendly, Furniture Manufacturing, Green Manufacturing, Labor Costs, Lean Six Sigma, Manufacturing Costs, Material Costs, P&L, Production initiatives, Profitability, Raw Materials, Sales Revenue, Supply Chain. Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , .

Increase Sales through Reduced Lead Times How to Create a Competitive Edge and Reduce Manufacturing Costs by Improving Process Efficiencies.

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