Decrease Cost of Production

DECREASE COST OF PRODUCTION

MOST IMPORTANT GOAL EXAMPLE

Reduce the cost of production per unit from 40 USD to 32 USD

DESCRIPTION

By reducing production costs, a company can increase profits while maintaining turnover. It is also possible to measure total production cost to get a absolute number.

KEY ACTIVITY EXAMPLES

Calculate Economic Order Quantity (EOQ)

DESCRIPTION

Calculate and manage inventory using EOQ principles to minimize carrying costs while ensuring a steady supply of raw materials. EOQ helps in reducing holding costs and freeing up capital.

DEFINITION OF DONE

Calculation done and management plan implemented.

UNIT

This is a sprint Key Activity

Renegotiate contracts

DESCRIPTION

Regularly review and negotiate contracts with suppliers to secure favorable pricing for raw materials.

DEFINITION OF DONE

New contract in place with one or more suppliers

UNIT

Contracts

Focus on waste

DESCRIPTION

Streamline manufacturing processes to eliminate waste. This may involve implementing lean manufacturing principles and automation to minimize labor costs.

DEFINITION OF DONE

Waste reduced.

UNIT

This is a sprint Key Activity

Focus on energy consumption

DESCRIPTION

Streamline manufacturing processes reduce energy consumption. This may involve implementing lean manufacturing principles and automation to minimize labor costs.

DEFINITION OF DONE

Energy consumption reduced

UNIT

This is a sprint Key Activity

Focus on production efficiency

DESCRIPTION

Streamline manufacturing processes to increase production efficiency. This may involve implementing lean manufacturing principles and automation to minimize labor costs.

DEFINITION OF DONE

Production efficiency increased

UNIT

This is a sprint Key Activity