CUSTOMER is the KING, Why?

Because, ultimately customer decides the PRICE!!!!!!!!!!!!!!!!!!!.

Let us understand, why PRICE is so important ?

Actually,

There are two types of markets, PURCHASER (BUYER) driven & PRODUCER driven. Before 1990, the world was really driven by PRODUCER and the price setting was :

COST + PROFIT = PRICE

The time was, make your products at any cost , by any means , by any method, by any types of RM, by any control and add your DESIRED profit level and finally set the SELLING PRICE.

In this period, COST OPTIMISATION was not so important , ONLY quantity was important. In that period, mostly managers were in the age group of 45+, means the designation was awarded to those hard-working man who was faithful to one management and is serving since inception of that business/ or since long time. He created his own mfg method based upon his experience ( That is called " JUGAAD TYPE ARRANGEMENT" ) and few workmen were specialised for that jugaad. If he is absent, means no production of that items on that day , so no dispatches to customers and finally no sales of that items. CUSTOMER were sufferer but there was no alternate also.

Now, calculation changed after introduction of QMS/ Standardisation as follows:

PROFIT = PRICE - COST

Now, CUSTOMERS decides the PRICE. If you want to sell your product at higher price than market ( without any XTRAAAAA features) , be ready for no sale or low sales, ultimately low profit.

If your COST is not competitive then you will sacrifice for PROFIT. Old mentality management is still rigid with PROFITABILITY without changing their mfg methods/ style of working and hitting hard to their people (senior People) for meeting the earlier day's PROFIT. The senior management finds the easiest & safest way to reduce MANPOWER ( TOP FEW or BOTTOM MANY). Calculation & presentation in board meeting becomes easy but gradually such company spoils their branding image and finally removed from industrial map.

OPTIMISATION IS NEEDED. ROBUST MANUFACTURING SYSTEM IS NEEDED. DISCIPLINE & HABIT NEEDED, RECOGNITION & MOTIVATION NEEDED, CONTINUAL TRAINING & SKILL DEVELOPMENT NEEDED ,

' IF WE WANT TO LIVE IN THE INDUSTRIAL MAP "

Time has come to change ourselves & without delay with fast pace too, otherwise....................... " Huh , you know better " !