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Common definition of the production cost can be explained as “the consumption of material or labor for the production of a product or service. It means, the sum of all the energy, labor, waste, rent, financing, etc. expenses that businesses spend on providing a product or service to their customers means the cost of that product.
The cost of production or service is divided into two main topics: fixed cost and variable cost. Fixed costs are independent from the amount of production, variable costs increase or decrease according to the production amount.
TC : Total Cost
TVC : Total Variable Cost
TFC : Total Fix Cost
The general approach of the manufacturers are reducing the fixed costs in the negative circumstances such as economic crisis. On the other hand, companies focus on variable costs when companies enter the growth trend.
Set Engineering Technologies works on variable costs and actions to reduce these costs. Our goal is to reduce your production costs by reducing the consumable amount of materials used in production processes or by using more efficient consumables.
Our working strategy;
– Analysis of current situation
– Unit cost calculation per product
– Planning of improvements
– Practice on the field
– Calculation of the benefit provided
– Reporting of annual earnings as currency
“Studies for reducing production costs” is our standard service to all of our customers. We are able to offer the same services to businesses that we do not supply any product.
For more information, please contact us.
New articles published to reach our museum and monthly e-newsletters
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