Reducing production costs
in consideration of production costs There is something we call Total Cost of Ownership (TCO), which is the total cost throughout the use of the machine. which consists of the value from the purchase of that machine Including the cost that will occur as a maintenance cost install assembly Replaceable parts or even eliminating all spare parts after use It is a concept that has been developed for use in the industry and has adopted the TCO principle to reduce both problems and enormous costs of the machine in the future. Many companies still believe that buying things must buy the cheapest and the best. but in practice It's quite difficult if you only think about this angle. Because there are other factors besides just cheap products, such as some not standard products, some suppliers don't deliver the products on the delivery date. Causing us to think on a new basis that It should be purchased from a supplier. That can offer good products and offer solutions to help reduce costs from stopping production later. Organizations have prioritized TCO over buying the cheapest product in order to reduce production costs in the long run.
Comparing the cost of operating the production of each factory is like an iceberg as illustrated. Often, we tend to look superficially at the price of machinery and spare parts. is the main expense But in reality it is only a small part. Compared to other expenses throughout the service life These costs come from wastage in replacing, repairing, managing, and stopping production. and to find measures to control and limit unreasonable expenses. Including taking advantage of working with suppliers who understand and are ready to jointly find ways to reduce TCO, especially solving problems in these 4 issues.
- Earnings: Need to show if Downtime has decreased, Productivity has increased Or the distance to deliver the product is reduced or not.
- Expenditure: Is the amount of waste from production reduced? Has the repair cost decreased? then affect the cost of buying a new replacement or not
- Assets: Has the cost of ownership of the machine decreased?
- Personnel work time: Assess whether maintenance time has been reduced. Do employees have more time to do other tasks?