Importance of Balanced Business and Data Control
Companies had to adapt themselves to the changes following the important industrial improvements at manufacturing sector. They have developed some critical strategies in order to sustain their competitive advantages under increasing competition conditions. Industry 4.0 started off in Germany is the name of one of these strategies and it approaches to our country with regards to the competition increasing day by day.
As Industry 4.0 strategy aims, productivity is in an easy position and its return can be received soon thanks to the recent technological opportunities.
Productivity and cost reduction are not independent from each other, they should be dealt jointly.
At this point, we should mention three significant elements to be considered following the investments made for productivity;
- Do we make more sales? That is, does the Throughput in Theory of Constraints increase?
- Do our Operation Costs decrease depending on the number of staff in the payroll?
- Do the stocks decrease?
Doubtlessly, each company wants decrease of its stocks and operation costs together with the increase of sales. Of course, all companies desire actualization of all together.
Therefore, we can say that the primary purpose should be increasing the Throughput, sales, while decreasing both the inventory and operation costs. It is evident that we may earn profit if the productivity investments made increase the Throughput, sales, and decreases the others.
The priority for me is production, then the sales!
The “priority for me is production, then the sales” view of several production companies appears as a reason causing difficulties in the recent competitive environment on the contrary to this theory. We can clearly see that this sense is not true if the question “can a company survive if it manufactures for filling its storehouses?” asked.
A balanced business is the one that has data control and that may realize comprehensive data management.
In short, each employer, production manager, factory manager, general director, or employee should ask himself or herself whether the company is a Balanced Business or not. The point here is whether balancing the capacity of each person and source in accordance with market demand is succeeded or not. As the conditions are continually changing, today data control and comprehensive data management are two vitally important points for becoming a balanced business and should be carefully dwelled upon.