How to increase production

At all times, people have sought to increase production with minimal cost. The fate of the enterprise, as well as its employees and owners, depended (and depends) on efficiency.

Instruction manual

1

According to Henry Ford, the best way to reduce production costs is to reduce the cost of the product (product). To do this, it is advisable to take the goods, time-tested, and improve it, taking away all unnecessary. It is necessary to reduce the weight of the product, to replace materials with more suitable ones. This method is called minimization optimization.

2

Using leverage, borrowed funds can positively affect the technical equipment of your production. There is no need to use watering cans on the farm when they can be replaced with water and a hose. You can purchase new machines on lease - this is a loan for business, which is given on the security of the machine itself and subject to the provision of a business plan.

3

A business plan is a necessary document for any major transformation. It should clearly state in which way you are going to achieve success. A successful business plan includes a list of sequential actions, broken down by time periods. You can involve business consultants in the preparation of this document, which can be found on the websites of freelancers (FL.ru, Freelansim.ru) and networks of specialists (Professionali.ru, E-xecutive.ru). Using a quality strategy will not only benefit the optimization of production processes. Lenders will be ready to give additional loans, because a business plan is the guarantee of your awareness.

4

An important process for increasing production is marketing. The success, including quantitative, of your enterprise will directly depend on the prices at which you offer your product and the number of sales. Reduce all the extra costs you can avoid. Sell ​​your products at an affordable price for both you and the buyer. Take care of positioning the product on the market - your product should have clear differences from competitors, and any of your seller should talk about these differences to potential buyers. This approach will allow you to have sufficient margin to generate income and invest in further expansion.

5

Use the 80/20 principle (Pareto Law) to select the most cost-effective products. Only a small part of the assortment makes the most profit - this law works for most existing markets. If more than half of the gross profit brings you one sort of wine out of ten others, it makes sense to produce only this variety with tenfold zeal. Calculate the profitability of the production of each product from the assortment. Leave in production only that which brings money.