Reduce Production Cost

Manufacturing Industry  Main Question Is : How To Reduce Production Cost

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Castrol Shuts Its TN Plant For Higher Manufacturing Cost

 Another plants shut off due  to high manufacturing cost . Companies like Castrol  have decided to stop production in one of its oldest lubricant plant  .

A report

In one the glaring example of the increasing manufacturing costs, Castrol India Ltd, a unit of BP Plc, has announced that it is closing its plant in Tamil Nadu. According to a report in The Economic Times, it waa mentioned that in a BSE announcement, the company cited a steep increase in its manufacturing cost per litre over the past several months.

It was reported that the plant would be closed from July 31 and the manufacturing activities would be phased out. The manufacturing plant is located at Tondiarpet in Chennai. The company stated "The Tondiarpet plant is one the company's oldest plants in the country and was faced with a situation of high landed cost of base oil leading to a steep increase in its manufacturing cost per litre over the past several months. This had adversely affected the production activities in the plant.’’

The reports mentioned that the company has also offered a voluntary retirement scheme to its employees working in the said plant. Employees have opted to separate by availing of the benefits under the scheme. The announcement came after market close on Friday, according to the report.


Source
wheelsunplugged.com

Electrotherm Introduces Modular Continuous Casting Machine

Continuous  Casting machines are used by  small to large billet manufacturing plants . This new modular continuous caster would save space as well as reduce cost of production by reducing energy requirement in running continuous slab caster .Electrotherm is India leading induction furnace manufacturers

A report
Electrotherm (India) Ltd, a leading manufacturer of induction melting furnaces and allied equipment, in Hyderabad announced the launch of its innovative Modular Continuous Casting Machine meant for the ingot-making industry.

The new machine, developed after extensive in-house research, is especially designed keeping in mind the specific requirements of the industry and offers a host of benefits such as saving of Rs. 300-500 per ton on production cost of billet, low civil and installation cost, compatibility to existing plant and less space requirement. The new product is expected to add around Rs. 100 crore to the annual revenue of the company.

The idea of such manufacturing devise, better known as ECCM (Electrotherm’s Continuous Casting Machine) was conceived a few years back and its launch was much awaited by the entire ingot manufacturing industry in India. The company plans to organize a series of seminars on the benefits of this machine in all the key steelmaking hubs in the country simultaneously with the launch and the first one was organized in the steel township of Mandi Gobindgarh and Ludhiana.

Speaking about it, Mr. Suneel Kulkarni, President, E&P Division, Electrotherm (India) Ltd, said, “We have been all along concerned about the hassles of casting ingots through mould and all related problems. In line with Electrotherm’s vision and mission of providing customer centric products and technology, we conceived the idea such innovative technique a couple of years back and attempted to Indianize the casting process, which suits the needs of our clients in a perfect way.”

These casters are a revolutionary product that have been designed in such a way that they can be adopted by and installed in any ingot making unit and these ingot makers can comfortably produce billets cheaper than ingots and compete in the local market. “Our product addresses the need of the industry because it fulfills all the requirements. They come with a modular design that reduces the civil and installation cost, they can be installed in any existing plant, they consume less space and above all, one can produce the billet cheaper than the ingot,” Mr Kulkarni added.


source

Indiainfoline.com

Cost Concepts - Tutorial

Cost concepts for any manufacturing unit explained  in  this video

Indian companies adopts cost reduction measures in economic slow down

With fall demand and high cost most of the Indian companies have vigorously adopted cost reduction strategies to save costs .

Aditya Birlas BPO operations in Canada has been reduced and BPO centres are being relocated to India . Aditya Birlas Copper mine in Australia are being closed for maintenance and repair

Tatas -Tata s have laid off number employees from Ford JLR s plant and design units and is now planning to get components from countries like India , China

Essar - Laid off workers from its Canadian mills

JSWS -- Jindals US units are to revived with lower fuel consumption and sourcing raw materials from low cost manufacturing countries


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