What are the main factor considered to reduce manufacturing cost?

Consider taking a closer look at the following areas to drive better efficiency in manufacturing operations.

1. Process optimization. Before talking about cost, you need to look at your entire process. Focusing on the process rather on the product or product-related cost might be the initial important departure from your current (usual) practice. Getting all great details of the (even not-yet optimized) process characteristics – prior to any improvement attempt might force you to draw a bigger picture than you are used to. This helps to manage the whole and not a part, avoiding partial process optimization or improving a process part but (unintentional) damaging another (maybe down-stream) part and sometimes making output even much worse.
2. Workforce optimization. By taking a demand-calibrated versus a capacity utilization approach to production decisions, companies can better balance workforce requirements and optimize labor costs. Reduced overtime expense can be a major source of savings.
3. Energy consumption. For many manufacturers, energy represents the first or second highest (with labor being the highest) cost element. By making demand-driven decisions, companies can choose to run slower to save energy without sacrificing customer service or output. Real-time, accurate visibility into the operating conditions is critical.
4. Lower cost of Quality. With better access to enterprise quality intelligence, as a component of overall manufacturing intelligence, companies can improve root cause analysis, take corrective actions more quickly, and even proactively prevent spills or quarantines from occurring in the first place.
5. Lower cost of regulatory compliance. As a continuation of improving quality and real-time visibility to how quality processes are executed and managed, it follows that the benefits not only reduce the cost of compliance, but also help to avoid production mistakes in the first place, which can cost a fortune to correct.
6. Inventory carrying costs.  Storing product inventory for a long period of time comes at a cost. Manufacturers need to consider the cost of storage, any necessary insurance, maintenance and other factors.  Whenever possible, manufacturers will benefit from nimble and responsive manufacturing operations to avoid overproduction and the resulting excess storage costs and risk.  By calibrating operating cadence to customer demand, companies can avoid “out-of-stock” occurrences without storing excess inventory.

THE CONSUMPTION IN ENERGY, AND RELATIVES NEW ALTERNATIVES RECOURCES

Its all about planning. If a good planning and study done before manufcturing it would be easy to reduce the manufacturing cost. 

1. sysytematic arrangement

2. effective premanufacturing training to corresponding field members are necessory

3. dont take too many shortcuts

4. reduce the cost of raw materials

5. effective and excellent supervisoin and time management

6. selection of appropriate workers for each fied. 

7. effective utilization of manpower, it will reduce the labour cost

The main factors are :

• The duration
• The quality
• Productivity
• Costs of production
• Non-manufacturing costs
• The delays of manufacturing
• Price policy
• The orders
• Competition
• Deliveries of delays
• The product of decline
• Production strategy

It is best to do a DEA analysis.  Data envelopment analysis which you can hire someone for.  Cost accounting should also be compared to the DEA analysis.