first Waste removal
The most important factor for cost is waste water. Reducing waste alone can reduce costs by 10-20%. The main areas of waste are:
(a) Injecting waste: Low-quality quality raw materials and other input elements are cheaper and cost-effective in the long run. They directly influence the quality of the final product. They cause direct damage to men and machines and increase maintenance costs. Frequent bidding, the resulting alternative purchasing, resulting in a delay in production, will entail additional costs. To examine all the input patterns required for quality compliance, we need a system that refers to all inputs in addition to high quality policy.
(b) Processing waste: When converting raw materials into finished products, wastes are very common in all industries. Of course, the process waste is self-evident. Although a certain amount of waste is unavoidable in the process, there is always a chance to minimize waste. How much is the processing type and the industry. Avoidable waste includes inadequate storage and handling, intake of excess input of raw materials, interrupted flow of processes, avoidable movement of materials, mixing between the various stages of work, etc. The residence time of materials within the processing area is also counted.
(c) Product waste: Defective products, secondary quality products, damaged products fall into this category. With the introduction of an optimal quality system, you need to minimize or avoid the second-generation production since you have to take advantage as the cost of producing a second-class product is the same as the high quality. Replacing components to get good from many seconds can be the choice. One of the common causes of waste products is damage or deterioration due to inadequate storage. Coordinate the ordering position and production schedule to minimize the finished product inventory.
(d) Logistic Waste: This is another common waste that we consider to be self-evident. It is not always advisable to ensure transactional risks and damage to the product. It will only cost you at a later date. Return the product to the destination. The customer will not be delivered in time and will doubt the reliability of the supply. Proper packing of the transport and storing on the shelves of sales points should be carefully planned without increasing the cost of packaging. Outsourced logistics services provide safe and timely delivery to eliminate such waste.
first Maximizing Productivity
(a) Power per Unit: Proper engineering and maintenance practices maximize productivity per unit. Planning the entire capacity for production schedule and production capacity will help. Identifying orphanage capacities and utilizing capacity are essential. Standby capacity by increasing the number of the same product, adding new products, adding added value (quality, functional benefit, etc.) to existing products or external work.
(b) Production Per Unit of Workforce: This is a tricky question, but it is required for almost every business. Preliminary determination of skills, fitness and efficiency is required during all recruitment procedures. When assigning tasks and responsibilities to employees, it is necessary to check their suitability for personal data. Numerous groundwork needs to be done in the design of workforce needs, which should be optimized to minimize the various administrative, manufacturing, supervisory and management tasks. The use of human resources should also be properly designed to provide alternates and alternates between other departments to ensure uninterrupted workflow. Avoiding duplication of work, automatically controlling work naturally, automating, including error-free documentation, where appropriate, management information systems are a minimal obstacle for people to perform tasks quickly.
(c) Investment per unit: Investments in machinery, equipment, buildings and other fixed assets, vehicles and supporting infrastructures, FDI, including inventory costs, financing costs, etc. taking into account. The turnover or profits of the entire investment, as well as individual components of the investment, should be worked out to determine whether the return is not optimal. You should make sure that you do not allow too many arithmetic that is only of statistical significance. If optimum profitability or productivity areas are reported, measures to minimize investment or increase individual productivity should be explored. This is harder than it sounds and it has to be carefully judged to recover the money invested.
These principles apply to any business, whether it is manufacturing, marketing, or providing services. Simple testing is generally sufficient to find out where cost savings can be made. A better approach would be if such an analysis is regular because the real circumstances are not static.
Source by sbobet