In the component industry, what are we selling? 5 Part Series- 5 of 5By Dean Kirby- Director of Strategic Partners on
5 Part Series- Part 1 of 5 - Cycle Time
In the component industry, what are we selling?
Many will say we are selling lumber and pre-built components for residential and commercial structures. Are they right? Yes! However, they are underselling the value and the importance of their products and services.
In all industries, we can refer to cycle time. How fast can we build and produce a product. But let’s go a bit deeper. Cycle time is an opportunity, won, or lost. Every day, the faster we can have a customer into their home is an opportunity gained. Every day we don’t, that is an opportunity lost. Cycle time is perishable. If we can improve our customer’s cycle time, that is more dollars in our customer’s pocket. For example, if you had a 50 unit project and by using your services (Trusses, Wall Panel, Floors, etc.), the customer reduces his occupancy time by 3.5 weeks. That’s 3.5 weeks of rent or 3.5 weeks sooner you can start your next project. If it is a rental property at $1000 per unit per month, that is an additional $100,000 of revenue in your customer’s pocket. The compounding factor of this over a year can mean $100’s thousands of extra income for you and your customers. Cycle time is only one aspect of the improvement your customer will gain by using your services. Your customer will also have improved quality, virtually emanating errors, lower labor costs, lower insurance costs, just to name a few benefits.
Check back again for part 2- Implementing Automation
#cycletime #Truss #ComponentManufacturing #Automation #Seethingsdifferently #TuesdayTruss
In the component industry, what are we selling? 5 Part Series- Part 2 of 5
This all sounds good, but how do you do it? You do this by employing laser-based automation technologies. You are not just selling sticks or lumber; you are selling so much more. The more value-added goods and services you sell to your customer, the faster your customer finishes a project. The more your customer will want to do business with you, as you make him more profitable. Customers have observed reduced set up and changeover time by more than 70% and increased productivity by more than 25% by using laser systems.
Check back again for part 3- Risk Assessment
In the component industry, what are we selling? 5 Part Series- Part 3 of 5
By providing these products and services, you are offloading risk from your customer, and you are taking on this risk. Customers pay vendors to take on risk. How do you minimize that risk? Reduce your risk by driving the human error out of the process with automation. By reducing the amount of errors , you reduce your overall risk. Automation will not only virtually eliminate your errors, but it will also improve your cycle time. Risk mitigation is a critical element for you to be profitable in providing these products and services. There are a variety of automation options. So what do you need to do to determine what is the right fit for you? First, let’s suggest an assessment of your business. Where are your production, “bottlenecks?.” Look at what you do today and ask yourself, why do I do it that way? Then, look at new possibilities of how to improve this flow. Some of your best resources to get this information are right within your own company. Talk to your employees; talk to your supply-chain Salespeople; speak to your peers at industry events; educate yourself by reading as much as you can on automation solutions. Get suggestions and ask how others are doing it. You don’t need to reinvent the wheel. Once you have completed this assessment, then rank your options in order. This is no easy task, as personal experiences, may sway opinions. So ensure that your analysis is based on as many facts as possible and not just the “gut feel.”
Check back again for part 4- Trust in Partnerships
In the component industry, what are we selling? 5 Part Series- Part 4 of 5
Trust in Partnerships
The Virtek Staff have over 20 years of automation experience and has built trust in the pre-fabrication industry along with our valued partner MiTek. Once you prioritize your list of improvements from a financial perspective, we have material flow experts on staff who can assist you in your evaluation. If you are looking for the best ROI, we suggest replacing older systems with upgraded systems. Virtek has an excellent Return on Investment (ROI) calculator, which walks you through the process. Virtek or MiTek Sales staff can quickly assist you in generating an ROI assessment. Most ROI on Virtek Laser Technologies in Truss/Panel plants is less than 1 ½ years. Virtek Trussline® technology has the best ROI of truss and wall panel automation technologies as it has the lowest cost per linear foot for your gantry or panel line.
Check back again for part 5 the final part of the series- Affordability
In the component industry, what are we selling? 5 Part Series- 5 of 5
Can you afford to go with technology that provides automation? It sounds expensive? But, can you afford not too is really the question?
Staying competitive in the marketplace is key to accelerating your successful business. Whether you add some form of automation or add on to your existing technologies and systems, the cost outweighs the greater expense of losing out on future or re-occurring business. We offer flexible options to purchase our automated laser solutions for your specific applications such as financing and leasing or rental options. If you would like assistance through the process of evaluation or ROI assessment, we do this complimentary. Implementing automated laser solutions is very worthwhile and an excellent investment to your business. It will compliment and further enhance automation solutions you may already have.
Let’s build a better tomorrow through automation with lasers and keep the returns back in your pocket.
#Truss #ComponentManufacturing #Automation #Seethingsdifferently #TuesdayTruss #Affordability