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One of the benefits of staying current on  professional social media sites is the chance to find some new insights and people with great ideas.

I found this gem on Medical Product Device Development Network on LinkedIn today, and just had to share.

Our thanks to Mike Shipulski for the thought leadership about our contribution as engineers to our firms’ profitability.

You know you're committed to engineering when...

Here’s what Mike had to say about  the contributions of engineers:

We all want to increase profits, but sometimes we get caught in the details and miss the big picture:

Profit = (Price – Cost) x Volume.

“It’s a simple formula, but it provides a framework to focus on fundamentals. While all parts of the organization contribute to profit in their own way, engineering’s work has a surprisingly broad impact on the equation.

“The market sets price, but engineering creates function, and improved function increases the price the market will pay. Design the product to do more, and do it better, and customers will pay more. What’s missing for engineering is an objective measure of what is good to the customer.”

To read the complete article, click HERE.

Tip of the hat to Mike Shipulski for sharing his thought leadership on LinkedIn.

1 thought on “Engineering’s Contribution to the Profit Equation- Mike Shipulski

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