Material cost is a main component in the total cost of the product (varying from 25 to 70%). Therefore, in order to control the cost, it is necessary to pay maximum attention for controlling material cost in following way: Way # 1. Control Over Abnormal Losses: These are avoidable losses and are wastage which should be controlled. These losses arise [...]
Following are some of the areas, in which saving can be done as discussed: 1. Materials 2. Machinability 3. Tolerances 4. Fewer Parts 5. Tool Design 6. Make or Buy 7. Increase Productivity 8. Distribution System. Area # 1. Materials: In order to reduce the cost of the product, materials of lower or different quality which will not affect the [...]
After reading this article you will learn about:- 1. Meaning of Standard Data 2. Methods for Determining Standard Data 3. Uses 4. Advantages. Meaning of Standard Data: Generally large number of man hours is spent in setting the time standards by using stopwatch time study. Further management is anxious to have the time standards before the jobs are actually manufactured [...]