DIY in our lives Ex: #1

Service and labor costs are a major direct component in any product. There are several associated issues where DIY, self-help and innovation make a big difference.

If we divide business into two simple parts, Producer and Consumer, the importance of DIY and innovation in both become definable. The manufacturer, always wanting to make his product more price competitive, is looking at direct and indirect ways to achieve the same. The direct methods are where innovation helps by way of better machines, processes, raw material etc. The indirect ways are where he relies on the customer. This is where DIY skills in all of us plays a major role.

The following example highlights the positive aspect of DIY.

Many of us shop at Metro. One common item on sale is a range of Office chairs. But the uncommon factor is visible when you buy it. It comes in a totally knock down package. A fully assembled chair of 3’ x 3’ x 4’ ( 36 cubic feet) is delivered to you in a box 3’ x 3’ x 9” (6.75 cubic feet) with a sheet of instructions and a hex key.

What are the benefits of this which the manufacturer and Metro pass on to you?

The manufacturer saves money on assembly labor cost, transportation ( 36 cft Vs 6.75 cft ) and Metro saves valuable storage space. All this is passed on to you the buyer. You pay lesser just because you have the skill to assemble a knock down chair. Imagine what the benefits will be if we can repair and assemble cars, bikes, furniture etc.

Now look at the negative side:

Do you recognise the product being transported here?

These are empty Agarbathi ( incense sticks) tubes. In a highly price conscious business every paisa counts. The manufacturer here is paying, say, Rs.500 to transport 1000 tubes at the rate of 50 paisa per tube. If he applies a little commonsense and realises the advantages of a cone versus a cylinder (something he sees everyday when he drinks from a tumbler), he can cut the cost of his end product drastically since he can transport 10,000 tubes for the same price.