Cost Reduction Water Storage Tank
15
Cost Reduction – Water Storage Tank By Sunil Raithatha Date: 25 th March 2009.
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Cost Reduction Water Storage Tank manufacturing by Rotational Moulding
Transcript of Cost Reduction Water Storage Tank
Cost Reduction – Water Storage Tank
By
Sunil Raithatha
Date: 25 th March 2009.
Overview
• Why Cost Control.
• Understanding Costing Structure.
• Methods of Cost Reduction – Direct Cost.
• Indirect Cost Reduction.
Why Cost Control
28 30 2935 38 38 37 39 42 43 45 48
5865 62 60
7080
105
70
2.21.82.2
2.22.122.22.4
2.52.42.52.42.22.52.62.52.4 2.4 2.6 2.40
20
40
60
80
100
120
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
Series1
Series2
Series3
LLDPEPrice
28 Rs per Kg to70 Rs per Kg
Tank Prices2.4 Rs/Lit
Why Cost Control
Year 19901000 Lit28 Kg
Year 20081000 Lit20 Kg
Why Cost Control
• Transport cost is going up.
0
2
4
6
8
10
12
14
16
1990 1995 2000 2003
Per Lit
Why Cost Control
• Fuel Price Going UP
18 Rs. / Lit 35 Rs. / Lit
Why Cost Control
• Profit Per Liter Going Down
Why Cost Control
• Only Cost Competitive Manufacturers will Survive.
Understanding Cost Structure
• Costing Sheet Water Tank :
• Direct Cost :
– Raw Material
– Fuel
– Electricity
– Manpower
– Lid and Fittings
• Indirect Cost :
– Transport
– Interest
– Depreciation
– Maintenance
– Marketing
Understanding Cost Structure
Understanding Cost Structure
Tank Costing 1000 Lit
Raw Material, 1482
Elecricity, 12Manpower, 14
Lid & Fitting, 35
Screen Printing, 2
Transportation, 150 Overhead, 20
Fuel, 78.75
Raw Material
Fuel
Elecricity
Manpower
Lid & Fitting
Screen Printing
Transportation
Overhead
Method Of Direct Cost Reduction.• Direct Cost :
– Raw Material - Use Correct Weight, No Powder Spillage, Uniform Thickness , Uniform Temp, Proper Xrpm/Yrpm ratio. Mould Flange heating
– Fuel – Burner Setting, Low Process Temp, Shut off Burner before cycle time.
– Electricity – Stop Minor Axis During Cooling. Stop R-Blower during Loading Un-Loading Use Backup Generator.
– Manpower – Productivity of manpower. Two Machines at a time.
Method Of Indirect Cost Reduction.
• Indirect Cost :
– Transport - Keep Control on Cost of Transportation.
– Maintenance – Keep Machine well maintained.
– Marketing -
Conclusion
• There is no substitute to “ Cost Reduction”.
• Manufacturer with cost compositeness will only earn profit.
• Upgrade and Maintain your Machines.
Thank You
