In this competitive era of the business, keeping product quality as it is while cutting the costs, is a challenging task. Business persons and entrepreneurs keep these things in priority but sadly, few of them are only know tips and tricks of achieving this. Kassem Ajami is one known figures of Nigeria and he is one of the experts in this field. He knows how to manage the operational efficiency and has optimised his business on such model, which is not only cost effective, but also quality of his steel products has been increased drastically. Today, in this article, we will explore the tactical strategies of reducing the expenses and enhancing the quality of products.
If you are a business person or if you are planning to step into your own business, this article is a cheat book for you to be a successful business owner. In this article, we will discuss the strategies of cutting the costs, without sacrificing the product’s quality.
If you are running your own business based on your products, first and foremost thing is quality of your product, which is non-negotiable. As per Kassem Mohamad Ajami, you have to take the control of productions in your hands first so that you have complete knowledge of raw material, production cost, production timing, number of workers and technical staff. Most of production cost is spent on defective pieces, technical errors and number of pieces needs rework. It not only makes the whole process 30%-35% costly but also lead to customer complaints which eventually leads to downfall in sales. Keeping productions in your hands can prevent all these things and can make product quality high and save your money and time simultaneously.
Excessive inventory management always tie up company’s capital and increased the holding cost. In the inventory, there are stocks of raw material which perishes with time and become non-unusable. After that, there are multiple parts and components which are ordered extra and they occupy company’s storeroom without any significant use which reduces the space availability. Kassem Ajami advises to implement an efficient inventory management system, by doing this, you will have the maximum control in inventory. It will reduce the risk of obsolete or perishable goods and that plays a significant role in cost saving.
Sometimes, making good and valuable relationship with your supplier can lead to cost saving. Supplier plays an important role when It comes to affordable and fast supply of goods, discount on wholesale prices, easy and longer payment terms and quality of raw material. Ajami Kassem always suggests to actively connect with you supplier and create a friendly environment for them so that they can be your partner in saving the cost and time of your final product. You can have a collaborative relationship with the supplier so that they can understand your requirement and fulfil them in your budget.
Staff Cost Optimization
According to Kassem Ajami, staff costs also play a significant part in company’s expense. Even, this is the most expensive part for some of the businesses. To make this expense in your company’s favour, your need to examine the workforce closely. There are multiple things which can be done such as training employees to handle multiple tasks at once, outsourcing the work which is not core for your company’s staff, automating the repetitive tasks and hiring low range labour for petty jobs and utilizing experienced staff in handing the core and sensitive functions.
Kassem Ajami suggests to manage the energy use in manufacturing plant. Managing energy efficiency can lead to cost cutting and also contributes in environmental sustainability. In a manufacturing plant, energy generally gets waste on excessing and high voltage lighting, unwanted high usage of cooling and heating systems, non-energy efficient machines and keeping the machinery active when not in use. Training staff to keep these things in mind and complete and regular training can help you in cost cutting for your company. We are living in 21st century, and here are hundreds of technologies which limits the energy usage significantly.
Lean manufacturing simply means focusing on waste material while production. Kassem Ajami recommends limiting the waste while production and re-use of wastage in production process time to time. You can do this by identifying the steps and procedures which has nothing to do with quality and eliminating the process. If the activity is not contributing in product’s quality, you can completely remove that activity from the list of tasks and save the time of your staff and reduce the wastage which leads to cost saving eventually.
Identifying efficiency and talent
As per Ajami Kassem, this is the process where you play the part of a leader to reduce the costs. There are cases where an employee or staff made the mistake and someone else corrected it. As a leader, you need to identify the talent and work efficiency of a particular person and transferring them to their respective department. Sometimes you need to check if a staff person needs more training or just need transfer, you need to check that. With time and experience, you need to provide a single person deserving hike, regular gifts to inspire them to perform better. Making a good relationship with workers is the key to apply this technique.
According to Kassem Ajami’s experience, regular improvements are the best way to save to excessive cost and growth in business. It is an essential part if you are thinking of cost cutting in a long run. You can do this by regularly review of your products, timely examining the process of production and involving your team in your problem solving to discover the solution. Product quality can be maintained with cost efficiency if you have a team of experience person in their fields.
Marketing and Sales Optimization
It is an integral part for your business growth. If you are thinking for instant cost saving, this is not the option but, if you are talking about a long run, it will play a significant role in your mission of cost cutting. Kassem Ajami puts his most of time and efforts in marketing and optimisation of sales. Marketing is not only about promoting your product, but also targeting the right segment of customers, managing the return of investment and creating a goodwill in market. It makes sure that your products reach in the right hands and also, due to the buzz created via marketing, your growth is guaranteed.
So, all this article’s purpose is to tell you that cutting costs without sacrificing the quality of your product is an achievable goal if you follow the right strategy. Running business is not only about producing and selling the products, it is also making a good relationship with the people who complete the circle from supplier to buyer. Having vast knowledge in everything is not possible, but with minimal knowledge and right amount of managing skills can do the work. Filtering out unwanted components and adding practice of recycling is the best thing you can do in this process. Kassem Ajami has embraced the changes with time and adapted the technology with experience to turn every penny into long term success.