Controlling Costs in a Manufacturing Company
If you are from a manufacturing company, then controlling the following costs is important:
a) Inventory Carrying Cost of Raw Materials
b) Work in Progress (WIP) Inventory Costs
c) Inventory Carrying Cost of Finished Goods
d) Capital costs to run the operations
e) Capacity costs
f) Maintenance costs
g) Quality costs
h) Inspection costs
Therefore, your focus should be on controlling the above costs and not solely on the enhancement of competencies. What if the competencies are built but the costs are not reduced? That would result in ineffective training. Therefore, you may decide your priorities based on the business requirements or the competencies of the staff.
Thanks,
Dinesh Divekar