Today, in a world of constant technological development, modernization of production facilities is becoming a standard for all industrial enterprises. Overcoming misconceptions about convenient strategies is a must. Avoiding change, postponing it, and failing to identify hidden costs and eliminate them, discussed in this article, are some of the biggest pitfalls for manufacturing companies that can quickly become a cause of disaster.
Procrastination in the context of manufacturing companies takes on a special, greater significance than in other industries or even in private life. At the same time, it represents one of the greatest threats to the efficiency and stability of the company. The belief that “weak but stable” is some way out, but sooner or later it will prove insufficient, as investments in digitization and new IT technologies become inevitable. It is important to get rid of the belief that the need for action arises only in crisis situations, ignoring earlier warning signs.
Implementing change in a manufacturing company requires money, time investment and employee commitment. It is much easier to run away from these challenges by finding numerous excuses and postponing decisions. Negative attitudes are very common in manufacturing plants, mainly due to under-information and lack of a broad view of the existing challenges. A key aspect is to understand the purpose of the changes being made and to find motivation for action that transcends the “now I’m out” mentality. Avoiding procrastination and actively engaging in modernization processes become not only a need, but also an opportunity for long-term growth and competitiveness of the company.
The role of the consultant salesperson involves first and foremost seeing the customer’s motivations. Often the customer doesn’t understand the real benefits of having systems in place, and just asks for a quote:
In such situations, the transaction often fails and the vendor only wastes his time and generates his own opportunity costs. To prevent this, a key part of the initial conversation is to outline the customer’s real motivation, such as the real problems the system is designed to solve. Then it’s worth the time and energy to tailor the offer in a way that actually helps the plant with its challenges.
Price should never be the only criterion for comparison. Cheaper, of course, does not always mean worse, but in many cases the lower price has a reason. Companies should not compete on price alone, but first and foremost on quality. Companies that have a large number of employees, have their costs, and at the same time maintain profits at an appropriate level, so they are more reliable. They have the ability to take on large projects because they are able to take full responsibility for completing them. Smaller companies, on the other hand, can offer equally good value for services, but are often unable to handle unexpected situations. Sometimes the lower price may be due to an internal company crisis, but just as often it is simply a matter of quality.
When it comes to systems that are expected to revolutionize the day-to-day operations of companies and improve them for years to come, one cannot economize. It is important to invest not only in a high-end system, but also in its effective implementation and support throughout the process before, during and after implementation.
Hidden costs in manufacturing plants, even medium-sized ones, can number in the hundreds. Often they are so hidden as to seem almost absurd. They can include:
It is extremely important to decide to conduct a reliable assessment of the production facility, involving specialists from outside the company who will look at the real situation with an experienced eye. In this way, they will make a reliable assessment of the machinery park, identifying the bottlenecks that generate the most hidden costs.
It is not uncommon to find, for example, that the lack of an automated reporting system can contribute to the loss of a million zlotys a year. This is because instead of focusing on basic duties and increasing production efficiency, employees waste time on manual reports.
Overcoming comfortable, limiting thinking and proactively engaging in modernization processes are the foundation for a company’s long-term growth and competitiveness in the market In an era of constant change and technological evolution, digitization is becoming an integral part of determining success in the manufacturing industry.
If you want to take your plant to the level of Industry 4.0, make an appointment with me!
