California Manufacturing Technology Consultants (CMTC) offers the following advice for increasing your competitive edge:
Many small business owners and corporations in Southern California are
wondering how the rapidly changing global economic markets are going to
affect their bottom line profits. To many of them, these challenges may
sound uncomfortably familiar:
- Cash flow problems compounded by slow paying customers experiencing growing pressures in meeting their own financial goals
- Banks reducing or eliminating lines of credit to small business
- Tighter cash flow causing increased lead times due to lack of materials and resources
Fabio Gomez, an experienced Business Consultant who works with small
manufacturers on a daily basis has developed some practical strategies
to meet the uncertainties of our fluctuating economy.
- Expect the unexpected as a regular condition of your working
environment: New competition both here and abroad, price increases in
raw materials, employee’s issues, regulatory compliances, weekly
supply chain challenges and unstable economic conditions compel the
small business manager to be knowledgeable about lean practices and
being adaptable in their decision making process.
competition is fearless, are you? The competition does not sleep and is
actively working on cutting into your market share. They are doing the
right things and are committed to eliminating non value added activity
in their operation. Because they use this effective business philosophy
and you don’t, they may be leaner and meaner than you.
your competition: Learn how your competitors have implemented a
“Speed to market” philosophy that increases profits by
faster, leaner (less waste) more flexible and innovative strategies in
getting their products to market.
- Time is of the essence in
positioning yourself to be more competitive: Although the techniques
and tools to be more competitive and profitable are available, many
companies do not use them because they “do not have the
time” and suffer from the “we’ll do it
tomorrow” excuse. This short sided philosophy continually impedes
them from being more profitable by the elimination of waste. Do not be
one of these companies if you wish to survive the current economic
Fabio Gomez, a Small Business Consultant with California Manufacturing
Technology Consultants (CMTC) offers the following advice for
increasing your competitive edge:
CMTC is a private, mission-oriented non profit corporation,
affiliated with the National Institute of Standards and Technology
(NIST) Hollings Manufacturing Extension Partnership (MEP). Our
affiliation assures performance standards that translate into customer
services with consistently high benefits and satisfaction.
- Identify the areas of non value activity (waste) that exist in your operation
- Estimate the financial impact of the elimination of waste in each area
- Prioritize the elimination of waste by the highest Return on Investment (ROI)
- Develop a plan to eliminate the waste in their value stream
a plan for eliminating non value activity throughout your company.
Developing and executing a plan to be more profitable through the
elimination of waste is the most difficult step in the road to success.
Unfortunately, most companies do not have the stamina to stay the
course and often abandon the plan when they encounter resistance to
change and new methodologies. If that sounds all too familiar, these
philosophies for a “Lean Enterprise” can be utilized to
eliminate the waste in any area of the business.
- Give the customer what they ask for by being lean, more flexible and adaptable.
- Increase your “Speed-to-Market” by being fluid and innovative in your business strategies
- Make changes that reduce expenses and improve profitability
- Use financial ratios to monitor the health of your business and make adjustments as required to accomplish financial goals
increasing debt by cutting your operational costs. This is accomplished
by eliminating non value added activity throughout your company, which
will increase your bottom line success.