OPTIMIZATION OF MANUFACTURING COST !
Cost can not be eliminated & should not be eliminated but can be reduced/ optimized & converted into Value through statistical analysis of consumption patterns and then do the KAIZEN. Some are direct & pseudo (Ghost) mfg cost listed below :
Overproduction( more than customer demand) ,
Less Production ( Cycle time more) ,
Initial start-up rejection,
initial start-up time more,
Rejection/ rework at final stage ( Caught during pre dispatch inspection),
Receipt rejections at customer's end ,
On line fitment rejection, internal & external customer complaints handling cost,
Warranty ,
Parts replacement cost,
Mfg process mistakes due to improper training
Low yield ( excessive use of RM),
Use of bad propositions of RM,
Excessive use of consumables ,
No use of consumables,
Leakages,& Loose ,
Spurious quality of spare parts used for initial saving of cost ,
Delay rectification of worn parts,
Material travelling distance more, multiple material handling ,
Searching times for parts & instruments,
Late disposal of unwanted stocks,
Waiting for setting approval
Set-up time more,
Idle machines,
Idle manpower ,
UNDER UTILIZED manpower,
Excess grey inventory ,
Larger batch size,over processing ,
No multi skilling,
No multi manning ,
No clubbing of operations,
Use of faulty instruments,
MSA not done truthfully ,
Bad sampling plan ,
CP & CPk less than 1,
Unsafe actions by workmen,
Unsafe conditions by management ,
less number of manpower ,
More nos of manpower ,
Lack of required skill level ,
Improper machine selection ,
improper plant layout ,
Batch production ,
Jugaad in place of scientific fixing.
................. ! There are many to be listed here!
HIGHER MANUFACTURING COSTS ARE NATIONAL LOSS. DO WE AGREE ?
IF YES , then CAN WE REDUCE or OPTIMIZE IT ?
I can help you. connect at :[email protected] 9811504855
Director-Operations & Business Excellence ||Motivator ||Author ||Hindi Poet|| WCMS Consultant||
6 年Do you have authentic data of above mentioned categories in your plant ?
Director-Operations & Business Excellence ||Motivator ||Author ||Hindi Poet|| WCMS Consultant||
6 年Dear Team, you are welcome to add some more costs in the comments column. I will update my post accordingly with your contributions.