Business and production optimization

In any kind of production need to strive to reduce the cost of manufacture of the product or service. This approach is equally important for large companies and for small businesses. Production optimization is very often a forced measure. Commodity market in modern conditions is characterized by tough competition. The struggle for the client is conducted in a variety of ways. If you look at the situation abstractly, it becomes clear that every company strives to produce their product with minimal cost, and sell it for the highest possible price. This is a General rule, one might even say, the basic law of business.

In the context of global changes in the world economy every sane person sees that the companies to produce goods efficiently work in southern latitudes, more accurately speaking, in China. For example, to produce a car requires suitable premises with heating and ventilation. In Russia without heating it is impossible to do. And every production optimization starts with measures to save thermal energy. It is obvious that the cost of fuel, whether coal, gas or wood, make up a significant share of the costs. Supervisory analysts have noticed another point.

In the countries of South-East Asia, climate of, say, hot. And to heat the factory buildings is not necessary. Investors and entrepreneurs are well aware of and appreciate this fact. If you build a plant in Siberia, you have to spend a lot of money on fuel. At the same time, under all other equal conditions, of such costs when placing enterprises in Vietnam or China is required. Thus, the production optimization starts already at the stage of choosing the region in which the plant is built. With only this one parameter one can draw a conclusion about where the production will be more profitable.

In this regard I must say that production optimization is the implementation of certain measures aimed at improving the efficiency and more profit. Every event is developed to improve a specific production factor. For example, main and auxiliary equipment constantly modernizarea. On the market there are new, more economical and more productive machines. for example, in the furniture industry, you can observe the process of how one versatile machine replaces four easy operating of the machine.

In Other words, instead of four pieces of equipment can use one. Following a productive factor – qualified. As practice shows, very often the production optimization starts with the fact that you are downsizing. In this case the main thing - to carry out the reduction without damage to the enterprise. Sometimes, reduce leading experts, and the remaining staff just can't cope with their functions. But if you focus on the above example with a universal machine, the reduction of three employees is fully justified.

Another production factor which affects the profitability of the company – consumables and accessories. Business and production always require reducing the cost of acquisition of materials. The most efficient way – is to buy them directly from the manufacturer, bypassing all the intermediate links. Of course, to apply the consumables need only high quality. Otherwise, the market will react negatively to products that do not meet the requirements of the consumer. Thus, optimizing all the factors of production, it is possible to achieve sustainability in your sector of the market.