To what extent can improvements in productive flow and product quality lead to an increase in sales and profit - Essay Example

Download file to see previous pages A company overlooking these factors of success can never achieve its desired goals and objectives in a competitive market because these processes play the role of two of the most indispensable ingredients of success. In this paper, we will discuss the importance of improved productive flow and product quality in achieving the goal of increased sales and profits. 2. Productive Flow The process of productive flow mainly refers to the continuity of the process that starts from bringing in raw material for product development and ends when the product becomes ready for distribution in the market. Companies focus on improving this process in order to avoid delays in product manufacturing. Productive flow involves a continuous and flawless movement of items through the process of product development. The process is said to be in an efficient working state if the next stage of product development starts straight away upon completion of the current stage of development. It is one of the main responsibilities of the employees working in the production department to ensure continuity of the process of product development because a minor flaw or delay in the transition of stages can affect the on-time completion of the production process, as well as the quality of the product. One of the main points regarding productive flow is that it is capital intensive, which means that it makes more use of machines and technologies as compared to workers. Therefore, it needs continuous and effective technical assistance to ensure flawless continuity. The advantage of capital intensiveness of the production flow is that a large number of items can roll off the assembly lines simultaneously, cutting down the cost of production to a large extent. Using this approach, companies can benefit from economies of scale, which consequently results in lowering the cost per unit of production (Riley 2012). Improvement in the productive flow can have a direct impact on the levels of sales and profit. In a competitive environment, timely placement of products in the market is imperative for the success of a company. When a company has its products reach completion stages in the scheduled time without any flaw, it will place the products in the market at the correct time and people will be able to buy those products, which will consequently result in improving the market share of the company. However, when there are delays in the process of production flow, the company will not be able to dispense its products in the market at the right time, which will affect the company’s levels of sales and profits. Therefore, it is very important for a firm to improve its process of production flow by eliminating the occurrence of flaws and reducing the risks to the continuity of the process to ensure higher levels of productivity and profitability. 3. Product Quality Along with productive flow, improvement in product quality is also essential for a company to increase its levels of sales and profit. Quality means excellence and in terms of product development, it refers to the development of such products that should be able to satisfy the consumers. A company can satisfy its customers only if it provides them with durable and high quality products. Quality is considered a key to the success of a ...Download file to see next pagesRead More