The way of the cost reduction

　The cost reduction of the product is the activity to have hung the survival of the industry on. The business needs the development of the product with appeal which is accepted by the market. Then, it doesn't sell in case of not being a selling price with the lowness of 1 dollar than the competition maker. Moreover, it has become a deficit if the profit isn't over even if it sets a low selling price. For the industry, it is every day in the war condition.
The great part with production cost has been approximately fixed at the setting of the design cycle and the manufacturing method of construction of the product and the production quantity. However, the role which does a cost reduction in the factory is big. That is, the mission at the factory is to manufacture a designed product cheaply in the good quality.
Therefore, the way of reducing a cost of production is explained from the experience of the writer below.

The condition to implement the activity of the cost reduction。
�@ "The production cost item of expense" which composes a cost of production become the accounting system to understand, being monthly every product.
�A A production cost item of expense every process be particularly grasped like the following table as much as the material process, the manufacture process, the assembler.

The active classification of the cost reduction
A cost reduction is activated, dividing into the following classification after servicing above condition.
�@ The value analysis activities which changes a design specification
�A The purchasing cost reduction activity of the bought our parts and the direct material
�B The manufacturing expense cost reduction activity
　
The item classification of the cost reduction
�@ The direct cost reduction item (The item which can do a cost reduction when an item is adopted on the same day)
　　･ The design specification VA item, the standard of quality VA item, the inexpensive material change item and the purchase relation item
�A The indirect cost reduction item (The item which can not reduce in the production cost in case of implementing the activity of the factor system of the item and result's not coming out)
　　･ The item of the direct labor productivity improvement･ The facility overall efficiency improvement item･ The indirect material change expenses reduction ite･ The factory management expense (in addition to the fixation expenses, the indirect labor) item･ The stock, the physical distribution cost reduction item

　In the following. It writes down details about the activity of the cost reduction with manufacturing expenses at the factory.
The reduction of the manufacturing expense
�@ The cost reduction for the change processing
�A The cost reduction for the fixation processing
It is divided.
By the past, the productivity improvement activity (the direct labor) was a main activity but under present condition, has a limit cost reduction's.
The match which passed to cost of production item of expense in general is necessary.
That is, it is a direct material cost, change expenses (The consumable stores, the power energy expenses, the repairing expens, the physical distribution costs).　Moreover, the activity which improves the fixation expense, the indirect labor and the factory administrative cost which is made factory management expenses and so on is necessary.Also, the improvement which makes cheap facility mold about the repayment cost of the facilities and the mold, too, and the LCA (the low cost automation) improvement, the disposal of the low load facilities and so on are more necessary.
To improve these, as the big means, a movement and so on are done for the concentration of the factory and the low labor country in the production base. Also, it is the improvement of the administrative cost (the indirect labor, the fixation expenses, the physical distribution costs in the factory) by the improvement of the production system.Then, improvement with substantial productivity and the improvement of the material yield improvement, the consumable stores, the repairing expens are done by all the loss improvement by the TPM activity.

Also, the improvement which makes the one which is made in and the share which is made outside the optimal and so on, too, are one of the meansBy the small improvement means ･ The concentration of the production line ･ The integration improvement of the process･ The improvement of the low additional value work･ The improvement of the process laying-out･ The abridgment improvement of the work time･ The machine cycle time abridgment improvement･ The LCA (the low cost automation) improvement･ The abridgment improvement of the down time･ The improvement of doing manufacture bad and the touching up･ The improvement of the energy cost
It improves by the above, the linear unit, the process unit
It implements these as "the production cost overhaul activity".
It writes down an active procedure and active contents below..

The production cost overhaul activity

The cost of production reduction item digging-up table