| In today’s world when Corporate are struggling | | | | 1. Raw material procurement:a) Bulk buyingb) |
| for profits and with fierce competition in the market, | | | | Opportunity buyingc) Make or buyd) Annual Rate |
| cost reductions, productivity enhancement and lean | | | | contracts |
| organizations have become today’s mantra s for | | | | 2. Logistics- Inbound and Outbound:a) Route |
| survival.Folllowing are the key area where you can | | | | mappingb) Loadability |
| implement cost reduction methods with significant | | | | 3. Warehouse and Stores:a) a.Low inventoryb) Space |
| results.Cost distributions are | | | | managementc) EOQ |
| Raw material : 60% | | | | 4. Manufacturing Process (Production) :a) |
| Fuel: 6% | | | | manufacturingb) Automationc) OEE |
| Manpower:11% | | | | 5.Energy, fuel & Watera) Motorsb) lightingc) |
| Adverisement :5% | | | | compressorsd) fuelse) recyclef) Waste water |
| Logistic:9% | | | | management |
| Taxes : 5% | | | | 6.Information Management |
| Maint & others : 4% | | | | Enterprise Resource management |
| Following are major areas of cost reduction | | | | 7. |