Manufacturing cost reduction in textile factory

Abstract

The objective of this thesis is to study and analyze the current problems happened in the textile factory in order to find the methods to reduce the production costs by applying the principle of engineering industry such as work study, document management system, analysis of industry costs’ structure and cost estimation including apply the computer software to help for calculating the production cost. As the results of study, the main problems of the sample factory are the inefficiency of document management system, the inappropriate costing system, and the loss in the production process. Thus, the researcher propose the methods in order to solve the problems as follows: 1.Improve the document management system within the sample factory 2.Apply “Cause and Effect diagram” to analyze the root causes of problems in order to find the efficient solutions. 3.Apply the work study method to set the standard work method, the standard time, and reduce losses in the production process. 4.Apply the computer program (Microsoft Office Access) to calculate the production costs. As the results of improvement, it found that the percentage of defect and waste decreased around 30.69%, the rate of direct labor cost per direct labor hour decreased around 7.42%, and the performance of workers increased around 6.31%. Furthermore, the accuracy of database has been improved that will help the top manager to decide to work more efficient and faster.