Hi Guys,

How can I reduce manufacturing costs and handling costs?

"An ideally laid out plant goes a long way in reducing manufacturing costs through reduced material handling, personnel, and equipment requirements, and in-process inventory." How?

Please help in solving my problem!

Nitin Parijaat

From India, New Delhi
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Hi Nitin,

In order to reduce costs, 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. Overproduction
2. Waiting time
3. Transportation
4. Processing (overprocessing)
5. Inventory
6. Motion
7. Defects
8. Underutilized manpower
9. Wrong utilization of resources/manpower.

You can find many articles/slides under "Just In Time" in any search engine.

Best regards,
Joseph


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Hi Nitin,

"How can I reduce Manufacturing Cost and Handling Costs?"

I asked my colleague from the Production division, and he has shared this piece of information. I hope it helps.

Cheers, Rajat

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. The 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.

From India, Pune
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