Allocate capital efficiently

Operational cost allocation quantifies where costs are created, where they are wasted, and how to systematically remove them across production, inventory, and scheduling.

Production Cost Reduction

Reduce material, labor, and factory costs across production units. Cut waste, balance workforce allocation, and maintain quality.

Total production cost

1.42 / mo

(14.2%)

Cost per unit

8.65

(1.40)

Labor cost per unit

2.31

(17.9%)

Cost per unit by category

BeforeAfter
Material Costs42 36
Labor Costs28 23
Manufacturing Overhead18 14
Scrap and Rework9 4

Inventory Cost Control

Reduce inventory costs across raw materials, work-in-progress, and finished goods. Keep the right stock levels to meet demand.

Inventory level by stage

Raw materialsWIPFinished goods
88.9
50.0
61.1
Wk1
81.2
49.3
69.6
Wk2
81.4
50.8
67.8
Wk3
81.5
51.9
66.7
Wk4
81.6
53.1
65.3
Wk5
98.6
58.0
43.5
Wk6

Inventory holding cost

186 / mo

(29%)

Inventory turnover ratio

9.4

+2.6

Avg. holding time

11 days

(6) days

Setup and Changeover Cost Reduction

Reduce the costs associated with equipment setup and product changeovers. Schedule jobs efficiently to keep production moving and reduce downtime.

Production Timeline

08:00
10:00
12:00
14:00
16:00
L1
Batch A-424h, Completed
Maintenance3h, System
Batch A-448h, Running
L2
Batch B-126h, Completed
Quality Check3h, Pending
L3
Batch C-0912h, Running
L4
Line Calibration4h, Priority
Batch D-216h, Scheduled

Changeover cost

24.6 / mo

(58%)

Total changeover time

3 hrs / day

(4) hrs

Overtime cost

3.1 / mo

(71%)

Ready to reduce your operation cost?

Contact Us