rohin

I was thinking on this situation since I woke up and would like to add one more thing. $50,000 which the company had earned should be given to the customer in implementing still better quality of boxes by putting some extra money in the material used to make boxes. The end customer would surely benefit from this. Also, this would create a differentiating thing between this box manufacturing company and other competitors and end customer would surely prefer to take boxes from the client who is providing better quality boxes. I would like to describe similar situation here. I want mention the real name of the companies. There was a commercial vehicle tyre manufacturing company 'A' whose sale was very good in Southern region of the country but was not good in one of the northern region state of India. They had done a market research and came up with interesting results: The mentality of Southern state truck drivers was to take the load as per the regulations on how much weight truck should carry The state where the sale was not considerable there the truck drivers used to take load more than the required Due to this there was more wear and tear in the tyre of the truck drivers carrying more load. Thus, they preferred tyre from Company B whose wear and tear was less compared to Company A Company A then onwards started making tyre whose capacity was to take on more load as per the standard. Coming back to our case we can say that end user do notice small things and will go where they are benefited more. Thus, investing in to getting better quality boxes by improving the material can be a good idea. Other view points would be very much appreciated.

At the end of the day for any business what matters is bottom line. We get in to business to earn money and nothing else. By saving $50,000 on boxes the company earns $50,000 a year. This is what matters to the company and nothing else. Why should they disclose it to anybody. They should be happy with their extra income. The principles of Lean & Six Sigma are very well adopted by Toyota and actually they are the one who used these first. They are also benefited by it. But with this they are not the one who sells most economical cars in the World. Their target would surely be to earn more money with less expense. When they can earn extra from these then why not! We talk about initiating a Six Sigma project by Voice of Business (VOC), Voice of Customer (VOC), Cost of Poor Quality (COPQ), Voice of Process (VOP), etc. Let this project be VOP here and everything would be fine.