Let's improve the manufacturing cost ratio! Industry standards, calculation methods, and efforts for cost reduction.
Introduction to Manufacturing Cost Management
Introducing know-how for improving cost ratios and increasing profits from the basics of manufacturing costs.
The cost is deeply related to a company's profits, and for manufacturing companies that operate factories, managing the "manufacturing cost" associated with products is a very important point. If one does not accurately understand the meaning and content of the term manufacturing cost, it will not be possible to manage costs in a manufacturing plant, which may lead to losses in profits. This book introduces basic knowledge about manufacturing costs and the issues that can be resolved by actually managing manufacturing costs.
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basic information
Chapter 1 What is Manufacturing Cost? - What is manufacturing cost? Three classifications of manufacturing cost - Direct costs related to manufacturing: "Direct Manufacturing Costs" - Indirect costs related to manufacturing: "Indirect Manufacturing Costs" Chapter 2 Analyzing Waste in Costs! Introducing Three Cost Calculation Methods - Standard Cost - Estimated Cost - Actual Cost - Analyzing and improving the differences between standard cost and actual cost Chapter 3 How to Improve Cost Ratio - Considering cost reduction - 1: Reducing material costs - 2: Reducing waste in the manufacturing process Chapter 4 Challenges that can be improved with optimal cost management and improvement methods - Expanding profits - Management analysis - Cost analysis system Chapter 5 Digitalization realized by DAIKO XTECH System solution "rBOM"
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【Purpose and Benefits of Implementation】 Improvement of Productivity and Resolution of Bottlenecks: Visualizing the progress and operational status of processes reduces waiting times and setup losses. Elimination of Dependency on Individuals and Technology Succession: Standardizing and digitizing the know-how of veterans establishes a system where even less experienced workers can perform uniform tasks. Realization of Preventive Maintenance: To prevent line stoppages due to unexpected equipment troubles, we operate maintenance plans based on operational data. Improvement of 5S and Workflow on the Shop Floor: By digitizing the movement of people and objects, we achieve a factory layout that eliminates waste in searching and unnecessary movement. 【Examples of Improvements and Achievements】 Case 1 (Automotive Parts): Digital standardization of assembly process work procedures. Technology succession to younger employees became smoother, reducing setup time by 35%. Case 2 (Precision Machining): Thorough implementation of preventive maintenance through visualization of equipment operation. Unexpected equipment stoppages were reduced by 80%, achieving stable production. Case 3 (Metal Processing): Transition from paper daily report management to a production management system. Real-time "visualization" on the shop floor reduced indirect work hours by 40 hours per month.
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Continuing to stay close to our customers, we have built up business knowledge and empathy to understand their challenges. By handling a wide range of operations in a one-stop manner, including system design, development, operation, hardware and software proposals and sales, and network construction, we remain a partner that supports the creation of "valuable systems," sometimes in a collaborative manner and sometimes in a leading role. Our company changed its name on April 1, 2025. (Former company name: Daiko Electronic Communication Co., Ltd.) The data and presentation materials published are from the time of the announcement.
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