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There is so many ways to reduce costs, which can be either targeted at direct costs, which would assist in contribution per unit, and so higher volumes generate more cost savings.
Or target the reduction of fixed costs, which would directly affect the break even point, being the number of units required to be sold before1 unit of profit is made.
My opinion would be to target both factors, direct costs and fixed costs, with a higher focus on fixed cost and Labour is the GREATEST FIXED COST, and can be changed in the medium term.
In food manufacturing, there is none negotiable necessity for Quality Control, this must be computerized, where the inspection of consistency of output is viewed by computer, and the production line filling bottles for instance is halted immediately there is foreign or inconsistent output noted. Human error must be removed, and Human inconsistency removed. Computer works24/7 without union demands, or legislative declarations or labour negotiations.
I am based in South Africa currently where there is high labour unrest, labour inconsistency, high absenteeism, all these factors come at very high cost.
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Latest manufacturing process like Just In Time (JIT), Total Quality Management (TQM) are some processes which lower operation costs.
i don't know .......................................................
A: Some of the latest trends with process manufacturing that food manufacturers can take advantage of to lower operational costs include:
