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In order to reduce cost you should apply the Quality Improvement Concept. The simplest way is to Map the process, and identify the activities that do not add value. There are 9 wastes that we should eliminate from our process:
1. Over production, 2. waiting time, 3. transportation, 4. processing (over processing), 5. Inventory, 6. Motion, 7. Defects, 8. Underutilized manpower, 9. Wrong utilization of resources/manpower.
You can search many articles/ slides under "Just In Time" in any search engine.
26th April 2006
Well i asked my colleague from Production division and he has shared this piece and hope it helps..
Strategies to Reduce Manufacturing Costs
Reduce Manufacturing Costs
PROBLEM Unplanned downtime is making it impossible to meet production goals.
STRATEGY Reduce downtime through team awareness of downtime events when they occur. Display downtime for both the event and total accumulated downtime. Once the information is available to those responsible, set goals for reducing it.
SOLUTION Automatically display downtime when the line stops. Use color and context sensitive variable changes to further enhance the awareness. Show a real-time run rate in green and change to the accumulated downtime in red when the line stops.
Reduce Waste by Attacking the Root Causes of Inefficiency
PROBLEM Production efficiency is down due to small stops and reduced speed operation.
STRATEGY Expose inefficiencies caused by small stops and reduced speed operation then attack the root causes. Display key OEE Performance metrics, reduced speed cycles and small stops, so that operators know when events occur.
SOLUTION It is typically very difficult for operators to detect and log small stops and reduced speed cycles. As a result, these issues often get overlooked. Additionally, small stop downtime is often logged in the wrong category when it is logged. The key is to automatically log small stops and reduced speed cycles then provide real-time display of this information.
Increase Productivity with Real-Time Goals
PROBLEM Plant floor employees are informed of production goals when it is too late to act.
STRATEGY Deliver real-time production goal information to the plant floor. Display a shift or job based goal. Additionally the target can be displayed in real-time as a count based on the product takt time. Actual count can also be shown as well as a calculated production efficiency and much more.
SOLUTION People respond to information that tells them where they are and where they should be in relation to production goals. Show the goal count, an actual count, a percent efficiency, pieces to goal, the estimated time to goal, a piece or time variance from goal, OEE Performance and more in any combination
Reduce Changeover Time Through Training and Awareness
PROBLEM Changeover time is hurting production efficiency.
STRATEGY Reduce changeover time significantly through training and awareness. Display the changeover time for all to see. Additionally, by showing a pieces to goal or estimated time to job completion variable aids operators in determining when to initiate internal set-up procedures. Internal set-up or those items which can be handled while running is one of the greatest tools for minimizing changeover time.
SOLUTION Show time to completion by displaying either a pieces to goal count or an estimated time of completion based on the current run speed. Also display the changeover in-process time for all to see. Set goals to reduce the time required and use color-coded data to show the allowed changeover time in green and time overage in red.
26th April 2006 From India, Pune