How to Cut Cost of Production

Golden9 · Nov 24, 2022

In order to increase your total profits, you can choose to cut the costs of production while maintaining the same quality and price.

One way is to find cheaper alternatives for equipment and raw materials. You can also choose to automate processes to cut down on labour costs.

Sanjeev · Nov 24, 2022

Another way is to reduce wastage in the process. Increase productivity by simplifying the process and reducing the rejection rate. Make small improvements in the processes and try to reduce the cycle time of the product.

Hate2Wait · Nov 24, 2022

Best option would be to increase the production and work for longer duration to achieve the economy of large scale production. It'll be different for different business so we need to see what suits us

Sanjeev · Nov 24, 2022

Ginger said:
Best option would be to increase the production and work for longer duration to achieve the economy of large-scale production. It'll be different for different businesses so we need to see what suits us

We cannot increase production if we dont have the demand, but we certainly can increase productivity. There is a difference in production and productivity.

Working for a longer time will increase the labour cost and will after the cost of the product.

Hate2Wait · Nov 24, 2022

Sanjee said:
We cannot increase production if we dont have the demand, but we certainly can increase productivity. There is a difference in production and productivity.

Working for a longer time will increase the labour cost and will after the cost of the product.

Yes I am aware about the difference and yes you are right we need to work on reducing the rejections and increase our productivity.

Augustus kparobo · Nov 24, 2022

Well reduction of workers can be effective, as long you keep the best of them, an effective amount of service will still be delivered. And as owner of a business or organization you will need to be encouraging and be the strength of the remaining workers at these point

Shavkat · Dec 3, 2022

It would be great if the factories will avail automated machines and lessened people working in them. I am sure it is the best option to do cost cutting.

Sanjeev · Dec 3, 2022

Shavkat said:
It would be great if the factories will avail automated machines and lessened people working in them. I am sure it is the best option to do cost cutting.

Yes, automation helps to reduce the cost of production. But automation results in taking away jobs from people.

flower · Jan 13, 2023

To cut the cost of production you need to boycott unnecessary expenses or gold plating which may not be necessary for production process.

eldavis · Mar 5, 2023

Another way to cut cost of production is by looking for a closer place where you can buy your raw materials from. Instead of spending much on transportation, you can look for a place that is closer to your business.

Hate2Wait · Mar 5, 2023

There are many ways to decrease the cost of production and one of such ways is to go for mass production.

Shavkat · Mar 5, 2023

Golden9 said:
In order to increase your total profits, you can choose to cut the costs of production while maintaining the same quality and price.

One way is to find cheaper alternatives for equipment and raw materials. You can also choose to automate processes to cut down on labour costs.

I am sure some companies would want to have cheaper prices of raw materials to be saleable. Despite that they are affordable ones, they still need to consider the qualities and standard usages of them are acceptable.

cherry123 · Mar 5, 2023

one can also choose to automate processes to cut down on costs and save money Anothe is to find cheaper alternatives of things to buy for the business to save money

How to Cut Cost of Production

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