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Manufacturers Advised To 'Get Lean' Before Increasing Prices
01 Jul 2006
With overheads, raw materials and energy prices at a record high, now is the time for manufacturers to take advantage of the subsidised support available to help them become leaner and secure a profitable future. Knowledge-based manufacturing is the only way forward as manufacturers increasingly struggle to compete on price against overseas competitors who are operating in low wage economies, says Arthur Richardson, director, South West MAS.
If manufacturers have not reviewed the leanness of their operations, how can they justify price increases to customers? It is important for manufacturers to make customers aware that prices are worked out with lean processes embedded into cost structures. This demonstrates that a business is using knowledge-based manufacturing in order to keep prices to a minimum. Customers may then be more understanding of any fluctuations in price as a result of raw material and energy costs increases.
There are a number of practical ways in which manufacturers can become more productive and efficient. Lean manufacturing techniques that can reduce costs and, most importantly, positively impact on profits, include: Fixing and optimising current machinery, investing in new, more efficient technology, reducing changeover time on machinery, or improving factory layout to reduce material handling and transport.
To find out more about the support available from the South West MAS, visit www.swmas.co.uk
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