As many startup businesses evolve, they follow a common pattern. An entrepreneur is inspired by an idea or market opportunity and “starts in a garage” or a basement (or their parents’ spare room). That entrepreneur at the beginning “does it all”, from product design, to marketing and sales, to customer support to manufacturing and shipment or in person delivery.
Jan 4, 2019 4:15:00 PM
Nov 20, 2014 2:23:24 PM
The decision to outsource product assembly and manufacturing is not black and white.
For many Original Equipment Manufacturer (OEM) companies, outsourcing manufacturing and product development includes many grey areas where various advantages and disadvantages need to be weighed. Especially when it comes to comparing different contract manufacturers against one another, the differences aren’t always clear – meaning your final decision isn’t always an easy one.
To help you distinguish reliable outsourced product assembly partners from those that aren’t a good fit for your OEM company, here are the top four facts you need to know:
Nov 13, 2014 8:42:00 AM
As an Original Equipment Manufacturer (OEM), you need to select an outsourced contract manufacturer with care: It’s not just your company’s production quality on the line, but your reputation as well.
That’s why many OEM companies choose private label manufacturers with an ISO certification, to ensure that any potential manufacturing partner meets an objective standard of quality.
But ISO 9001 certification shouldn’t be your only measure of selecting an outsourced manufacturing partner. Here’s why:
Oct 21, 2014 11:43:00 AM
As an Original Equipment Manufacturer (OEM), you appreciate first-hand how lean manufacturing practices enhance your profitability (and the profitability of your contract manufacturer). But, have you considered how a lean culture improves your bottom line as well?
With a lean culture, all of your employees are personally invested and responsible for continuous improvement at your OEM or private label manufacturer. From high-level managers to front-line staff, your entire business focuses on new ways to work efficiently, increase value and deliver better service to clients and customers.
Lean culture makes a difference in profitability by dramatically improving employee engagement. According to a recent study by the Workplace Research Foundation, increasing investments in employee engagement by 10% has the potential to increase your profits by $2,400 per employee, per year. The same study also found that highly engaged employees are 38% more likely to have above-average productivity.
So, how does a lean culture contribute to increased employee engagement? Here are three of the most common ways:
1. Lean Culture Means More Employee Feedback
Within a lean manufacturing culture, your employees have the opportunity to be a part of your firm’s process improvement initiatives. These lean projects give your employees the chance to provide feedback on current processes and then directly address those concerns themselves.
By soliciting and using workers’ feedback, you increase employee engagement with your company. Not only does a lean culture foster a habit of continual feedback, but it equally encourages employees to get involved in making a solution happen – whether that’s in the boardroom or on the manufacturing floor.
Sep 16, 2014 7:00:00 AM
It’s a mistake many Original Equipment Manufacturers (OEMs) make: They assume that lean initiatives are one-time fixes or a set of tools to be used occasionally. But using a lean manufacturing approach like this is likely to yield disappointing results.
Lean manufacturing isn’t just a temporary tool or passing fad – it’s an imperative for OEMs and contract manufacturers looking to maintain (or gain) a competitive advantage. Yet, there’s no way to ensure your lean manufacturing programs are properly implemented unless you have a lean culture to maintain those ongoing initiatives.
Crafting A Lean Culture
Transitioning to a lean mindset means about 20 percent of your work involves process improvements and eliminating inefficiencies and about 80 percent of your work involves creating a lean culture. This is because your employees are the heart of all lean manufacturing: Their workflow, attitudes, outlooks and working relationships all determine the profitability of your lean manufacturing services.
Without a sustainable lean culture, your continuous improvement efforts ultimately grind to a halt. Why? Because without employee-driven, culture-based decision making, old and inefficient working habits eventually resurface. Also, if your employees aren’t constantly looking to improve, your processes fall victim to efficiency entropy.