Hi, Please answer anyone to this, how to make cost reduction in HR and production department in a manufacturing unit. Thanks in Advance. Regards, Suresh.K
From Singapore
Hi to everyone, Give some suggestions how to reduce cost reduction in all aspects of Hr and production department. Thanks in Advance. Regards, Suresh.K
From Singapore
Dear Suresh,

There are many aspects of cost reduction in respect of HR.

1. The cost of hiring can be minimised. You are aware that there are several options for hiring

Advertisements/ Head Hunters/ Job sites/ Campus recruitments/ Employee referrals etc. You need to choose the best option and minimise the cost incurred.

2. If you are using a travel operator you need to optimise the utilisation of the cabs.

3. If printing and stationery is under HR then you need to control cost there too.

4. You have to control attrition because everytime you hire a new employee it will increase cost.

5. You have to optimise the cost of training.

6. If you have a canteen you have to exercise better control over it.

7. Likewise in HR & Administration the list goes on endlessly.

8. In production there are several factors like this to reduce cost.

a. The machine utilisation must be maximised, no machine should lie idle.

b. Scrap should be minimal.

c. The cycle time to produce the material has to be improved continuously.

d. Running the Diesel generator set should be optimised.

e. Energy conservation measures will bring about cost saving. Options Solar lamps to conventional lamps etc.,

f. The breakdown of machinery has to be minimised. The time taken to repair the machinery should be minimal and the time interval between two breakdowns should be maximised.

g. Men utilisation should be maximised by improving planning.

h. Work in Process should be minimised.

i. First pass yield must be maximum.

j. On time delivery must be maximum to avoid penalties for delayed deliveries if applicable and increase freight cost to look for alternate modes of dispatch (Air freight Vs lorry transport)

k. The quality of incoming material should be perfect to prevent re-work.

l. Like this the list goes on endlessly.

Each department is given objectives on factors relating to Cost, time, quality and quantity.

The factors PQCDSM has to be under control to be cost effective.

P - Productivity

Q - Quality

C - Cost

D - Delivery

S - Safety

M - Morale

In case you need any further help please feel to write to


From India, Madras
In order to give you concrete solutions you need to clearly describe the situation: what is the size of your organisation and what methods of production do you employ, etc.
From United Kingdom
Hi all, Please give me some insights on conducting a Motivational Training. What simulation games should be used and what are its interpretations..
From India, Delhi
I have some of cost deducation points I hope it will be helpfull for u.
reuse of one side papers.
Stop unnecessary use of lights
If u have canteen facilities than control over them by preparing foods as per persons & serve them as per demand.

From India
Have you looked into the tools Lean manufacturing has to offer? Lean is how many companies are transforming their operations and have greatly reduced costs.
From United States, Downers Grove
reduction of cost canot be attained by a single employee it must be a collective effort of all employees starting from attender to boss .even boss himself should switch off bulbs and a.c.while leaving his room instead of leaving the same task to attender. all employees must be enlightened the effective utilisation of power , water , stationery and its consequel benifits to the organisation and nation by erecting ply cards at the important places in the factory and office premices.
n v r naidu

From India, Hyderabad
Its small size Industry around 6,000 Sq.Feet. Its a electric control panel board manufacture, canteen facility is there, contract workers are engaged, no machineries are there its a assemble unit only.
Thanks & Regards,

From Singapore

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