Cost reduction strategies                             
              
production










  • WASTE  REDUCTION

All leakages , spillages  should be plugged in process .under weight /overweight  of product  to be
monitored so as to reduce  material consumption variance .



  • USAGE OF BY PRODUCTS


All manufacturing products  results in by products by carefull categorisation these products could be
eithe reprocessed /recycled into system itself or could be sold to the other manufacturer for which
these products to be primary raw material .



  • PRODUCT DEVELOPMENT /DESIGN .

Cost savings can be obtained by modifying  design /shapes/volume  or changing  ingrdients with
same price and packaging .




  • MACHINE   CHANGE OVERS.

Production plan   should  be in  a such a way that  there should be less of change over in machine  
as it takes  times for  change over .

In case change overs are un avoidable then  spare parts or spares machine should be kept in
readiness as to take less of time for change overs .


  • OEE ( OVER ALL  MACHINE  EFFICIENCY  ) :

Over all  machine  efficiency  should be calculated for  each machine and recorded  and machine
with least efficiency should be investigated  for improvement .It is highly recommended that plant
goes for  TPM .A schedule maintenance programm is recommended  for low break down s.


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