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First, we think about a few key questions: What type of manufacturing is full of competition? What are the means of competition? What will these competitions bring to the company? To think clearly about these issues, it is very helpful for SMEs to find a way out.
The first question is, what type of manufacturing is full of competition? From high-end to low-end, almost all industries have competition, and the more low-end participants, the more intense the competition. The second question, what are the means of competition? There are two general situations. One is to improve the quality of the product and meet the higher requirements of the customer. The first is to lower the price and use the low price as a weapon to fight against the opponent. General high-end manufacturing tends to quality lines, and low-end manufacturing tends to price lines. Why is there such a choice? To improve the quality threshold is relatively high, the corresponding companies need to have strong technical strength, and this selection cycle is long and effective, so it requires the corresponding companies have a stronger financial strength. This also determines that many companies do not have enough strength even if they want to adopt this strategy. With price competition, the threshold is low and the effect is fast. Many companies have to accept this strategy from the technical strength and financial strength. What are the results of these two strategies? To improve quality, we can create new areas of consumption, expand our customer base, raise the threshold for competition, and reduce competitors, so as to increase profitability again. Price competition, in order to obtain more orders, further reduce profit margins, and even to reduce the cost of products may reduce product quality. On this road, only a handful of people can survive, and those who can survive are those who offset the decline in profits with scale advantages.
Let's take a look at the current situation facing SMEs. Small and medium-sized enterprises are small in scale, with little funds, few personnel, relatively weak technical levels, and resources that can be used are relatively limited. Is there no way out for the SME? Measures can be taken in response to business issues: First, route selection, and first, specific implementation.
In terms of route selection, given the relatively weak technological capabilities of SMEs, they can optimize their own products and only do the best products, and place limited technical resources in a relatively small area, thus creating quality differences with other competitive products. Quality has advantages, and products will use corresponding high-end occasions. The market situation will tend to be benign, the corresponding competition will be reduced, and profits will increase. Many not-so-famous SMEs in Germany and Japan are practitioners of this route. From turning tools to fastening parts, from bearing balls to pen nibs, etc. . Of course, this is just a skeleton of ideas. The rapid changes in the market, how to implement concretely on the basis of this skeleton, also need to change from time to time according to the situation in accordance with the specific circumstances at the time.
In terms of specific implementation, it is to exercise internal strength. Here is divided into three aspects. Hardware, software and management.
Let's talk about the hardware first. Why do you mention hardware first? Because this is the basis, all the value is ultimately reflected in the output of the device, and all other work is also attached to the device. Therefore, the equipment should not be too backward, at least to ensure that the production equipment can produce a large number of products that meet the technical requirements. In terms of hardware, in addition to production equipment, there is also data information collection and processing equipment. After the IoT technology matures, it will be used in conjunction with it. These devices include sensors, data analyzers, etc. These are extremely important, and you decide whether or not you are qualified for admission in future commercial battlefields.
Regarding software, because of its bad use, many companies do not value it or they do not pay enough attention. In general, many companies do not understand how software can play a huge role, but only know that there are benefits. In the context of software promotion, follow the trend. Can I have a role to put aside, anyway, I have it, and the customer does not have any obstacles to communicate. There are two points that have been ignored here. First, the software's role in helping the work is greatly underestimated, especially with respect to the collection and processing of data and information. Second, many companies just complete the software and do not know that the software Is a system engineering, how much software can play, depends on the person who uses it, who has professional knowledge, is not systematically trained on the software, and other aspects of the software's environment Supporting situation, whether the smooth connection with the software.
Regarding management, this issue seems to be rarely noticed in the manufacturing field. In start-ups, because there are so many things and there are few people, the autonomy of all employees is relatively large. Under normal circumstances, they can complete tasks according to their own ideas. Once the company develops to a certain scale, the company begins to improve the system and enters the standardization stage. The company regards the rules and procedures as a standard, and often results in how innovative the employees’ ideas are and how effective they are in solving problems. However, employees do not have the right to speak and the employees are more like It is a tool for performing tasks. I do not deny the necessity of regulations and procedures, but in the process of studying the regulatory process for large companies, we should not only emphasize the form but not the essence. The regulatory process ensures that many things are not a problem, but it also rigidifies the organization, limiting efficiency and inhibiting the use of employees’ intellectual resources. Large enterprises themselves have the comparative advantages of human resources and market size. Therefore, it is more important to solve problems, regulations, and processes that they face, and their scale advantages can offset some inefficient processes. However, the problems faced by SMEs are certainly different from that of large companies, and there is no advantage for large companies. Under such conditions, it is clear that students are bound by their own hands and feet. SMEs have their own advantages, that is, more flexible and faster. Do not lose or lose.
Don't cling to your hands like big business. How can that be done? Emancipate the intellectual resources of the employees of small businesses. The small business itself has a small number of people and it is also used as a tool, which is a huge waste. How to use it? The impermanence of the impermanence of the impermanence of mountains, as long as the goal of making full use of intellectual resources. The specific form can change from time to time.
Of course, how to deal with competition is not a short article that can be written. To attract more people to think about sharing.
How Manufacturing SMEs Cope with Increasingly Fierce Competition
With the rapid development of technology at this stage, the threshold for manufacturing is getting lower and lower. In 2015, the manufacturing capacity and output of the manufacturing industry have obviously been surplus, and the supply has far exceeded the expected market demand. More and more fields are plunged into fierce competition. . How do SMEs emerge from this cruel battlefield? It is the first question for SMEs to consider.