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Maintain Competitive Prices and Profit Margins Together

companies complain of rising world oil, which will indirectly affect the cost of production and higher selling prices. Even if the selling price fixed, meaning thin profit margins, even if the company is not careful in the calculations, can be said to lose. Condition that forces management to think hard to survive. If the price is raised, it does not compete with other competitors and if it is not raised then the company will lose money. How appropriate action to address this kind of problem? One is the continuous cost reduction just as discussed earlier. Continuous improvement efforts will greatly help to reduce the company’s losses. Any quality improvement efforts will eliminate or reduce the waste that exists in the relevant industry system, so the price per unit will automatically be reduced.

Identification Product Manufacturing

In the lean-sigma concept, it is important to identify products that will be executed. Identification is done solely based on the customer’s perspective. Product with certain characteristics should be based on customer required qualifications. In addition to product design and spec accordingly, in general there are several things to do in order to implement lean manufacturing in the industry. Value of manufacturing products offered pertaining to the following matters: 1. The quality of the product in accordance with established specifications and agreed 2. Competitive prices compared with competitors at the same level of product quality 3. On-time delivery in accordance with the contract purchase 4. Services related to products, product delivery and after sales service 5. This specific case is determined by the customer or other agreements between manufacturers and customers to produce products that comply with the specifications..