Cost Reduction Water Storage Tank

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Cost Reduction Water Storage Tank manufacturing by Rotational Moulding

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Cost Reduction Water Storage Tank

  1. 1. Cost Reduction – Water Storage Tank By Sunil Raithatha Date: 25 th March 2009.
  2. 2. Overview <ul><li>Why Cost Control. </li></ul><ul><li>Understanding Costing Structure. </li></ul><ul><li>Methods of Cost Reduction – Direct Cost. </li></ul><ul><li>Indirect Cost Reduction. </li></ul>
  3. 3. Why Cost Control LLDPE Price 28 Rs per Kg to 70 Rs per Kg Tank Prices 2.4 Rs/Lit
  4. 4. Why Cost Control Year 1990 1000 Lit 28 Kg Year 2008 1000 Lit 20 Kg
  5. 5. Why Cost Control <ul><li>Transport cost is going up. </li></ul>0 2 4 6 8 10 12 14 16 1990 1995 2000 2003 Per Lit
  6. 6. Why Cost Control <ul><li>Fuel Price Going UP </li></ul>18 Rs. / Lit 35 Rs. / Lit
  7. 7. Why Cost Control <ul><li>Profit Per Liter Going Down </li></ul>
  8. 8. Why Cost Control <ul><li>Only Cost Competitive Manufacturers will Survive. </li></ul>
  9. 9. Understanding Cost Structure <ul><li>Costing Sheet Water Tank : </li></ul><ul><li>Direct Cost : </li></ul><ul><ul><li>Raw Material </li></ul></ul><ul><ul><li>Fuel </li></ul></ul><ul><ul><li>Electricity </li></ul></ul><ul><ul><li>Manpower </li></ul></ul><ul><ul><li>Lid and Fittings </li></ul></ul><ul><li>Indirect Cost : </li></ul><ul><ul><li>Transport </li></ul></ul><ul><ul><li>Interest </li></ul></ul><ul><ul><li>Depreciation </li></ul></ul><ul><ul><li>Maintenance </li></ul></ul><ul><ul><li>Marketing </li></ul></ul>
  10. 10. Understanding Cost Structure
  11. 11. Understanding Cost Structure
  12. 12. Method Of Direct Cost Reduction. <ul><li>Direct Cost : </li></ul><ul><ul><li>Raw Material - Use Correct Weight, No Powder Spillage, Uniform Thickness , Uniform Temp, Proper Xrpm/Yrpm ratio. Mould Flange heating </li></ul></ul><ul><ul><li>Fuel – Burner Setting, Low Process Temp, Shut off Burner before cycle time. </li></ul></ul><ul><ul><li>Electricity – Stop Minor Axis During Cooling. Stop R-Blower during Loading Un-Loading Use Backup Generator. </li></ul></ul><ul><ul><li>Manpower – Productivity of manpower. Two Machines at a time. </li></ul></ul>
  13. 13. Method Of Indirect Cost Reduction. <ul><li>Indirect Cost : </li></ul><ul><ul><li>Transport - Keep Control on Cost of Transportation. </li></ul></ul><ul><ul><li>Maintenance – Keep Machine well maintained. </li></ul></ul><ul><ul><li>Marketing - </li></ul></ul>
  14. 14. Conclusion <ul><li>There is no substitute to “ Cost Reduction”. </li></ul><ul><li>Manufacturer with cost compositeness will only earn profit. </li></ul><ul><li>Upgrade and Maintain your Machines. </li></ul>
  15. 15. Thank You

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