Increasing the Company Profit by Reduction the Production Cost (case study in an Oil Seal Automotive Manufacturing)

Abstract

The purpose of this paper is to present how the automotive spare part manufacturing
company obtains an increase in the profit cost by reducing the production cost. The
reducing time for the preheating temperature during the process moldings obtained less
than 30 minutes where it is provided as much as SG$ 1.309 per month. Due to the
replacement of the Tubular Lamp (TL) to the LED of 2440 pcs for the factory, we got
reducing or saving of power about 228 kilowatt or approximately SG$ 3.379 per month.
From the Insulation machine as much as SG$ 570 per month, and from the Trimming
machine saving cost of SG$ 4750. Then it provides the total reducing cost from the
applied method as much as SG$ 9438 per month. The main results obtained from the
investigation show that the estimated downtime cost constitutes about 10% of the total of
the proposed system in the remote area. It is found that the reduction of Electricity Bill
about 2000 kilowatt-hours, every month. molding machine (lot 502), and the facilities. It
is found that the profit around SG$ 4750, So we found the total profit from around SG$
9.438 per month or SG$ 113,256 per year..