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Started by : Rajesh Kamal, Sales/BD Manager, Larsen & Toubro   02 22 2010 11:30:51 +0000
Industry : Industrial Products/Heavy MachineryFunctional Area : Quality Management(Operations)
Activity:  32 views;  last activity : 07 06 2010 20:18:09 +0000

Reducing manufacturing costs increases profitability by making more with what you have or the same with less. It sounds pretty simple but many companies struggle with this. Of course there are many ways to reduce manufacturing costs like, any non-value adding process would increase the manufacturing cost. Therefore, it is very important to ensure that the manufacturing process is controlled in such a way that they go through the least or totally no waiting process.

To assure optimal finished product quality, control programs should be comprehensive, and should include multiple barriers and adequate process design and operation to such that it helps in reducing manufacturing costs also. Keeping this in mind, how do you think that process control can help reduce manufacturing costs?

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1 Achieve a positive Return On Investment
2 By reducing re-work and producing right product at right time

Achieve a positive Return On Investment

idea posted by Rajesh Kamal Sales/BD Manager, Larsen & Toubro

Manufacturers are faced with having to satisfy customers while operating profitably in spite of fluctuating consumer demand, strict government regulations, raw material variability, and capacity constraints. With Process Controls applied in these Industries, they get the tools they need to help meet compliance, efficiency, and quality requirements, which in turn, can help their businesses achieve customer satisfaction and profitability goals.

So, there will be a better management of safety, quality, and compliance requirements, reduced manufacturing and labor costs, ability to tie promotions into manufacturing plans, an improved production planning and inventory management and thus with all this, there is positive return on investment.

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By reducing re-work and producing right product at right time

idea posted by R.Rajkumar Asst. Manager (Planning), Goodearth Maritime Limited

Process control normally tries to reduce the defects per batch or lot.Hence by doing this it forbids the entire system or part of the system to perform additional re-work operations which in-turn reduces the cost of manufacturing.

Moreover process control aligned with proper planning ensures the right material to be processed at right time based upon the actual customer demands. i.e.,a machine doesn't process on materials which are not required at that point of time.This is the basis of a pull system where the entire operation in the production line is been synchronized with the customer demand.

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