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Cost Saving Idea for manufacturing

What is Cost & cost saving management

• Cost is measurable, cost is usually measured in financial units like dollar.
• Cost is resource lost or surrendered something in exchange to achieve any specific aim.
• Cost management is involving the activities, processes, stages or objectives required to ensure that total management of any task is completed / complied within planned budget.

Cost Saving management

Resource planning

Organization should have determined 4W & H i.e. what resources, where resources should be used, why any specific machinery, equipment or device need at particular workplace or area, who will be plan, perform and control over the resources, and when any resources will be utilize or perform its task.

A resource planning identifies the resources required to finish the manufacturing task, generally resources planning contains; type of resources (Manpower, machinery, materials) needs, planning / schedule for each resources is required to be utilize, assignment of each resource setup in manufacturing process. Generally, cost saving team or cost management consider resource planning basic to identify, budgeting and control by specific method i.e. monitoring and control.

Cost Estimating

Organization should have proper preparation, documentation for estimation of cost and resources needs to finish any manufacturing task / process. Before raise any manufacturing process / task needs to estimate the cost of full manufacturing task – stage by stage, process to process, what resources against how much cost required, and how much cost variation will possible during tenure.

Cost estimation basically defined on common manufacturing requirements that are:

1. Resources
2. Manufacturing Processes
3. Manpower
4. Maintenance & services
5. Quality testing / Inspection
6. Training

Cost budget

Third phase of cost saving is preparing budget of each manufacturing stage, organization should ensure each manufacturing stage cost will be sufficient to complete full task and budget team allocate overall cost estimated to individual work to establish a standard for computing performance.

Cost budgets are manage as above mentioned basic manufacturing requirements, but the budget of each item are defined or allocating budget and maintain baseline to tracking and control purpose.

Cost Control

To effective control over cost of whole manufacturing cycle, needs to frequently observation or monitoring on each manufacturing stage to identify which stage / phase is raise the cost up to planned budget, and identify reasons behind increasing cost of particular item or task.

Generally, Cost control includes – Monitoring each budgeted task performance to cost effective manner, identify and assurance of each manufacturing process / task change should involve in revised cost, and identify tools, procedures to effective controls on cost by specific method.

Cost Saving Documents / records are needs to maintain for tracking, revise, implementation and control over manufacturing processes. See below example format of cost saving record and what fields are general in it:

1. Month – cost saving are done in the month
2. Project – Project which is the title for the cost saving and project that cost saved
3. product  – name of the product which cost saved during procedure the product & cost saving in product manufacturing
4. Process – name of the process that used for the product manufacturing
5. Equipment / devices  are in used for the manufacturing procedures, supported equipment / devices for cost saving
6. Components are used for the cost cutting in the manufacturing process / supporting activities.
7. Cost Saving – total cost saving in the month.
8. Document – supporting documents that evident of the process of the cost saving / method / reasons and information of cost saving

EXAMPLES, SAMPLES & FORMATS

1. COST SAVING IN WORD DOCUMENT DOWNLOAD FREE
2. COST SAVING IN PDF FORMAT DOWNLOAD FREE
3. COST SAVING TEMPLATES DOWNLOAD
4. COST SAVING IN JPEG, PNG FORMAT DOWNLOAD