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