Cost reduction strategies                           
                

production
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Any  manufacturing  unit would have a production facility where good are produced .Production
comprises of man , machine and material .Proper allocation of jobs , layout and  material results in
cost efficient production .



LOCATION:

Companies now days are shifting base to lower cost  of  production which  make sense .
production base in cities or metros have become  non viable as cost  of living  , cost of raw material ,
overhead cost  and tranportation  cost have  gone above the roof . Companies are moving to low cost
areas  like CHINA , INDIA , UKRAINE ,IRELAND , VIETNAM  ETC .locally companies have shut
operation  in DELHI , MUMBAI , CHENNAI , KOLKATA   and moved  to areas like UTTARAKAND ,
JHARKHAND , JAIPUR , BADI ,  ETC .


LABOUR  PRODUCTIVITY


The handling of  product and raw material shoudl be reduced to minimum by either putting of
conveyors or automatic transfer to the machine .



To have  minimum movement  of manpower for getting material , tools and shifting .





















To have zero defective  and rework  as it is nothing but pure waste . The first step towards
elimination  is to adopt standards like ISO -9000 & GMP or in house  standards.



Study the positions of worker  while working  and eliminate those position  were  worker feel
uncomfortable or experience  stress while working .This would   help  in better productivity .
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