What is manufacturing cost? Basic knowledge of manufacturing cost and the concept of cost.
Introduction to Manufacturing Cost Management
Introducing know-how for improving cost ratios and increasing profits from the basics of manufacturing costs.
The cost of goods is deeply related to a company's profits, and for manufacturing companies that operate factories, managing the "manufacturing costs" associated with products is a very important point. If one does not accurately understand the meaning and content of the term manufacturing costs, it will be impossible 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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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 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 - Profit expansion - Management analysis - Cost analysis system Chapter 5 DAIKO XTECH provides a system solution for achieving digitalization: "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 to reduce waiting times and setup losses. Elimination of Dependence on Individuals and Technology Transfer: Standardizing and digitizing the know-how of veterans to establish a system where even less experienced workers can perform uniform tasks. Realization of Preventive Maintenance: Implementing maintenance plans based on operational data to prevent line stoppages due to unexpected equipment troubles. Improvement of 5S and Flow on the Shop Floor: Digitizing the movement of people and objects to create a factory layout that eliminates wasteful searching and unnecessary movement. 【Examples of Improvements and Achievements】 Case 1 (Automotive Parts): Digital standardization of assembly process work procedures. Smooth technology transfer to younger employees, reducing setup time by 35%. Case 2 (Precision Machining): Thorough implementation of preventive maintenance through visualization of equipment operation. Achieved an 80% reduction in unexpected equipment stoppages, leading to stable production. Case 3 (Metal Processing): Transitioning from paper-based 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.
