The Sustainability Impact On Access of Ownership In Manufacturing

One of the biggest emerging economic models in the 4th Industrial Revolution is the sharing economy. The Sharing Economy is normally defined as a peer-to-peer based sharing of access to goods and/or services, which usually facilitated by an online community-based platform. This type of economy puts the focus on sharing underutilised products or assets in ways which improve sustainability, efficiency, and community.

 

Consumer/Users and consumer-owners of these shared products are the most essential participants to the sharing economy and therefore, are able to play a significant role in the sustainability of it. By promoting shared usage, a product-service system approach, and the ability to transform goods into services, 'service providers' (whether private or public or individual owners seeking to maximize and promote the efficient use of their possessions) can incentivize users that a collaborative industry is a strong one economically, creatively, and sustainably.

 

Through the promotion of property pooling (usage of products or even techniques) rather than focusing on ownership, the sharing economy brings together the possessions of participants to encourage their usage by many others. These might be objects used on a daily basis, like a house or car, a project or a skill, or even manufacturing equipment, the rationale is that by widening a possession's circle of beneficiaries, this will reduce the number of new goods used or consumed.

 

In this age of collaborative consumption, access over ownership (where users offer and share their goods and services to other users for a limited time through peer-to-peer sharing activities, such as renting and lending) being able to attract people for reasons that are primarily economic and financial in the beginning can then create comradeship, social ties and community while generating, over time, more sustainable behavior.

 

Recent developments suggest that collaborative consumption platforms are used to foster a sustainable marketplace that takes advantage of the social, economic and environmental consequences of consumption in order to meet both current and future needs.

 

Even in the manufacturing industry, there are a number of reasons why companies are now pursuing sustainability:

 

  1. Reducing costs and waste to increase operational efficiency
  2. Focus on building long-term business success and viability.
  3. Creatively find ways that respond to new regulatory constraints with opportunities
  4. Strengthen their brand and reputation which also builds trust
  5. Reach new customers and increase competitive advantage

 

 

In the end, these practices encourage manufacturers to change their production methods towards a more service-based approach with the main objective no longer being simply to sell a product but to support the experience and usage of a product. Collaborative manufacturing and access to ownership limits waste and generates savings.

 

The new sharing economy has the potential to promote the much-needed evolution in our collective consumption behavior.

Created by Rigved Raut at Mar 7, 2020, 4:20 AM
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Social Capital - The Driving Force Behind the 4th Industrial Revolution

The future is here and many see us in the midst of the 4th Industrial Revolution. One of the key components within this is the importance of Social Capital and its impact on the 4IR.



For years the manufacturing world has been a segregated industry and it’s been over a century since it has seen any changes. In recent times, however, there has been a shift from ownership to access as well as from market to a system of interconnected people or things. Recently it seems that placing a company in a network of mutually beneficial reciprocal relationships designed to optimize the collective effort, results in success being more likely guaranteed.



By forging interpersonal relationships, the manufacturing industry can develop a shared sense of identity, understanding, trust, cooperation, and reciprocity. A group whose members manifest trustworthiness and place extensive trust in one another will be able to accomplish much more than businesses who remain segregated. In the dawn of the 4IR the industry is moving from being solely service-related to experience-oriented - using Airbnb as an example in the travel industry. The time is ripe for a collaborative manufacturing experience.



Cooperation and team approaches to problem solving, allow a group of partners to respond more quickly to changes. Most importantly, it’s the spontaneity and creativity that flows from network-based collaboration that gives participants a collective edge in this new, more demanding high-tech economy. Because being in a network involves more detailed information flow, a steady amount of feedback and rewards “outside the box” thinking, participants in that network are more likely to forge new connections, produce new ideas, come up with new scenarios, and initiate new plans of action in our hypocommercial environment.  



The natural outgrowth of the 4IR is the social economy. The higher a company moves up the “Social Economy Pyramid”, the quicker the rate of value acceleration - since they are able to more easily access a slew of social value drivers. Examples of these Social Sharing companies are, of course, Uber and Airbnb. The Social Economy is transforming how we consume, live day to day, work, and even travel and the democratization of goods and services by Social Sharing companies are leading to structural disruption over a much wider range of old-school sectors. The underlying reason for these shifts and accelerations is Social Capital.



Just as physical capital is created by changing materials and forming tools that create production/products, social capital is created when relations among persons change or interact in ways that create action. Therefore a social platform that embodies supply and demand in the manufacturing sector, is a natural outgrowth of both. The 4IR is driving long term shifts from industrial production to cultural production.



Though social capital was generated in a period which preceded industrialization, the early phase of industrial growth drew on that social capital and strengthened it further. Now in the midst of the 4IR, social capital, again, offer an atmosphere where intertwining supply and demand leads to growth and benefits the entire Manufacturing Industry.



This new world structured around access relationships is already producing a different kind of human being who values relationships. Manufacturing can no longer be a solo island but a part of a new Pangea. The future is Collaborative Manufacturing.



McPond was formed with an eye to benefiting the entire manufacturing industry by bringing businesses together and driving social capital in the manufacturing industry. A business looking to reap the benefits of the 4IR, or just aiming to be part of this era of innovation can do so by being a part of McPond’s growing community. The platform is a natural outgrowth of the age of social sharing and any business who chooses to participate, is also participating in the evolution of industrialization in our millennium.












Created by Rigved Raut at Mar 7, 2020, 4:12 AM
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How McPond Works?

Some of you may find yourselves in a situation where either you have machines sitting idle collecting dust in between jobs or maybe you have contracts and workloads but no equipment or space to get the job done. McPond can solve both issues.


If you are lacking in machines to do a job, you can use McPond to gain access to the equipment you need. It's also great passive income/additional revenue if you have idle machines just sitting around.


It's a platform that benefits the entire manufacturing industry - to have this kind of symbiotic relationship between machine owner and company. The vision is to stimulate industry-wide growth with the concept of peer-to-peer machine sharing which brings in new opportunity for everyone in the industry.


The way McPond works is a simple process from A to Z.


First, for owners, it doesn't cost anything to list the equipment and machines can be listed from any location.


A machine renter that has an upcoming job, can easily browse the website and both find and book the machine he or she needs for their particular project. At that point, the renter will then be able to send a message to the owner and discuss all requirements (and whatever part details needs to be manufactured) with the machine owner. During this time, McPond authorizes the credit card.


There is a mandatory message field during booking because the initial conversation between renter and owner is an essential part of the process. We strongly suggest that scope, timeline, raw material, programming, job set-up, tooling, measuring instruments, factory capabilities or any other auxiliary services - if required - be discussed with the machine owner prior to acceptance of the job. This enables them to assist in best possible way and keep clear lines of communication. Note that raw material costs are not included in the Machine rental fee unless specified on the machine page in addons.

 

Once the machine owner reviews the job details and based on the job compatibility with machine, he or she will accept or decline the request. If accepted, the booking begins when the machine is put to use for that particular project. At that point, the machine owner will log daily machine operated hours. McPond’s billing cycle ends on every Mondays, the machine renter will be invoiced and their billing method charged every Monday for the previous week’s hours. If the job is declined by machine owner, the card authorization will be released. 


Both the machine owner or the machine renter can then simply end the booking from the booking details in the settings section at anytime - or once the project is completed.


Further, the machine owner will provide a qualified operator to assist with the job and operate the machine. The machine will always be operated by the machine owners qualified operator. Again, McPond was created to inspire manufacturing by providing access to machines and opportunity.


Machine Renters should never attempt to pay machine owners outside of the McPond platform. Paying and communicating through McPond helps ensure that you're protected under our Terms of Service, Payments, cancellation and refund policies and other safeguards. Paying or communicating outside of McPond also makes it harder for us to protect personal information and puts the customer at greater risk of fraud and other security issues, such as phishing. These benefits and safeguards can only be provided if the machine is booked and paid for directly through the McPond platform. If a Machine owner asks to pay outside of the McPond, McPond should be contacted immediately by emailing support@mcpond.com or calling +1 (312) 761-4490 to report any such activity.


Lastly, at anytime during the booking or once the booking has ended, Machine owners and Machine renters can leave feedback on their experience and rate one another. This rating system serves to build a sense of trust and accountability.


McPond is setting out to the change the tapestry of manufacturing in this 4th Industrial Revolution. By providing easy access to equipment to renters, McPond looks to providing a boost to industry and the future of manufacturing.

Created by Rigved Raut at Mar 7, 2020, 4:06 AM
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The Numero Uno Guide to Machine Rental Pricing

Did you know that your idle machinery could be a source of extra revenue? It can be rented out, with only a little bit of effort and know-how! This guide will help you calculate the rental cost of your machine. You will need to set the pricing at just the right level to entice the maximum number of clients interested in renting your equipment.


So, how exactly do you fix the right rental price for your machinery? Let's take a look!


Things to Consider When Setting the Rental Price for Your Machinery

When businesses are leasing out their equipment to other companies, certain factors need to be incorporated into the rental price, to ensure clients get their money's worth. Some of these include:


1.    The unique value that your equipment offers to a wide range of customers

2.    The absolute and relative cost positions of the company

3.    Comparison with competitor pricing


These variables are not always easy to determine, and they change continually. Equipment-rental businesses with capital-intensive, long-lived assets are often faced with difficult decisions with regard to pricing. They are generally not prepared for the market forces that can drive the rental rates above or below the amount required to cover the capital costs spent to procure the equipment.


The 9 Best Ways to Set the Right Rental Price for Your Machinery


1.    Determine How Much Your Customers Are Willing to Pay

Through the use of advanced technology, you can accurately research what customers are willing to pay for your product.


2.    Set Lower Prices for Older Machines

You may have customers who might not be able to pay the higher lease rates you charge for brand new machines. By lowering prices on older equipment, you may be able to attract more clients.


3.    Provide a Machine Operator in the Lease

Savvy customers will pay for experienced labor. If you can provide a machine operator along with the machine, you will find that you can command a higher price.


4.    High Time/Low Dollar Utilization

If you find that equipment is being leased frequently and regularly, you may want to increase your rates need to maximize your potential income.


5.    High Dollar/Low Time

Conversely, if your rate is too high, your equipment may stay put. Adjusting your prices may help you move your inventory.


6.    Additional Support

If your facility can provide a client with additional manufacturing support that can help complete a job more efficiently (e.g. tooling, measuring instruments, or lifting equipment), it will allow you to justify an increase in pricing.


7.    Keep Maintenance Costs in Mind

When pricing your machinery, make sure to build unexpected maintenance costs into your pricing formula.


8.    Look at Competitor Pricing Last

Decide upon a price before comparing it to those of your competitors. Reconsider only if there is a large discrepancy.


9.    Aim to Recover Acquisition Costs Within a Few Rentals

This should ideally be accomplished within 10-12 rentals. Look at fixed costs, labor and equipment costs, competitive pricing, and the cost of customer service.


If you follow all the tips provided above, you will be on the right path to making your machinery work for you, even when you’re not! 

Created by Rigved Raut at Mar 7, 2020, 4:00 AM
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Sharing Machines: A Revolutionary Idea for Business

The concept of sharing machines has emerged as a new and revolutionary tool in the business world. The idea was initially adopted by those in isolated sectors of the economy, but has since been incorporated by those previously using only ownership business models.

 

The Growth of Sharing Economy

The birth of the sharing economy model occurred in the transportation sector, with the emergence of ride share agencies like Uber. Users soon realized the benefits of this service outweighed the cost and inconvenience that often comes with owning and or driving a car, and drivers were able to procure additional income.

 

The sharing economy has expanded into other sectors like travel and healthcare, but soon another will soon open through the sharing of machines and hardware. The possibilities are endless, and its potential is gradually becoming more visible.

 

How Would a Sharing Economy Work in the Manufacturing Sector?

The manufacturing sector forms the backbone of most industrialized economies. It is very demanding, however, and new companies require significant infusions of capital for to start their operations. That is why most new entrepreneurs are unable to foray into it.

 

The sharing machine concept is one that could modernize manufacturing. New organizations without sufficient capital to invest would be able to lease machines lying idle in factories and kick-start their operations in earnest. Manufacturers can make maximize their profits, even when their business is not in full operation. This model is a “win-win situation” for both parties.

 

Further, as new entrants into the field establish a foothold and begin earning profits on their products, the combination of the conversion of idle assets into profit-making ones and the growth of newer players will lead to overall economic growth that will be beneficial to society as a whole.

 

Other Benefits of Machine Sharing

The benefits of machine sharing surpass merely benefiting the lender and the borrower- they play a more significant role in improving society.

 

Growth of Production

It foolish to presume large corporations and organizations will always assume the role of industry leaders. For an economy and a society to truly flourish, there is a need for new entities to emerge and an exchange of fresh new concepts and more efficient production methods to take place.

 

If the profits earned in the manufacturing industry remains confined to a few groups with economic muscle, the economy will eventually stagnate. By allowing smaller manufacturers to lease heavy machinery rather than being forced to purchase it, they could reduce startup costs, and have a better chance at becoming more active participants in the economy more quickly.

 

Reduction in Costs

As more new businesses rented machines, rather than purchasing their own, there would be a reduction in costs of the machinery. With consumers disinclined to purchase machinery for small projects, companies would have to turn their attention to either creating new and more affordable machines, or reduce their prices drastically, which would also increase manufacturing. As prices declined, there would be an increase in sales and growth in production.

 

Generation of Profits from Out-of-Use Machinery

In any economy, assets like machinery have earning potential. If they are not being used, that potential goes to waste. By leasing them to others that need them, their owners can capitalize on that potential. Adopting the machine sharing model would not only provide an economic boost to the owners of the machinery, but a boost to the economy overall. It would also prevent unnecessary production of new, excessive, and useless machines, and protect the resources and money that would have been used to generate them.

 

Conclusion

Machine sharing holds great potential. Making redundant hardware useful in generating greater economic activity is advantageous to both producers and consumers. It is time for well-established members of the manufacturing industry and new ones seeking to become established to understand the many benefits and adopt them.


Created by Rigved Raut at Mar 7, 2020, 3:53 AM
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