Ineffective cost control and high overhead of manufacturing operations: It is too difficult to track, analyze and reduce the costs of manufacturing operations

In the conference room are meeting: Christian (CFO), Irene (IT Manager), Paul (Purchasing Manager),
Peter (Production Manager), and Enrique (Engineering Manager)

The Agenda title:

Ineffective cost control and high overhead of manufacturing operations

Although it varies from company to company, you might want to examine the following:

  • How do you ascertain the true cost of manufacturing an item?
  • Do you know what your equipment, materials, labor, are actually costing you, and where the opportunities are for improved economy? How often do you analyze the financial aspect of manufacturing?
  • How effectively do you apply overhead costs to the cost of the product?
  • What is the directive from company leadership regarding cost management?
  • How has the manufacturing operations performed historically as a financial management entity?
  • Would you prefer to base your costing on actual or standard costs? Can you define standard costs?