In its simplest term, Profit equals Revenue minus Expenses.  In order to improve profit, one must either increase revenue or reduce expenses.  While either method can be effective, and certainly the most prevalent in the US is to reduce expenses, arguably the best method is to do both; increase revenue while decreasing expenses.

One of the best ways to accomplish this is to improve the quality in your product.  Better quality will lead to higher customer satisfaction, which leads to customer loyalty and referrals.  Better quality in your product will also result in lower manufacturing costs.

“I did improve the quality in my product, it did lead to more sales, but it cost me a fortune,” you say.  Yes, you can pay for quality in materials, inspections and improved manufacturing systems.  That certainly does not reduce your expenses.

So how does one improve quality of a product and lower expenses at the same time?  The key is to improve the quality in the “Design” of your product.  Improving the quality in the design of your product should generate better customer delight, lower manufacturing costs and lower warranty cost.  This article discusses some factors to consider to improve the quality of the “design” of your product.

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Each issue of The Munro Report will feature one of Munro's Design Principles. Implementation of these principles will help maximize the profitability of your product through its design.

#1 Teamwork

Teamwork is a cornerstone of product development.  It is the difference between good and bad designs. Without a diverse and dedicated team, no high sounding plans have meaning.   If you only have money or time to invest in one thing, invest in a team approach.  The biggest problem with teams is a lack of diversity.  In a typical company, a bounty of knowledge exists within the established organizational areas:  the executive staff, marketing, finance, purchasing, engineering and factory floor labor. 

Unfortunately, in many companies, new product developments or redesign efforts virtually ignore many of these information sources.  While teams are created, they often lack diversity and dedication, so the high-sounding plans have no real meaning.  They often involve the same old people, trained the same old way, sharing the same old experiences. 

Having only engineers on the development team is like making soup with no spices.  It has the main ingredients, but something is just not right.  In order to have successful product development, you must assemble the right team.

The people of Munro & Associates bring a wide and varied set of skills and experience to this organization.  Although we are spread out from Tokyo to London and points all across the United Sates, this group of men and women share an additional common vision, which is to make our communities a better place.

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