What is Cost Deployment?

  • December 10, 2020
  • Sadık Cihad Ceviz

By using Cost Deployment, it can be effectively seen which areas in the production stages need to be improved or developed. By breaking down the production stages into smaller pieces, specific causes of losses can be identified and eliminated in order to improve and develop production. Each of these separated parts is assigned certain costs with financial data from the manufacturer. The most important point when determining the cost is to measure the costs in the most precise way, match them with the losses and then make them efficient.

Cost Deployment manages the work that determines the losses and wastes in the workplace, the results analyze the costs of losses and determine the improvements to be made to prevent these losses.

How to Distribute Costs?

-First, all processing and conversion losses are calculated. Appropriate targets are set to reduce losses.
-Second, losses and waste are identified based on previous measurements.
-Third, losses and sub-losses should be analyzed and separated from each other.
-Fourth, the actual generated waste and all generated lost values can be calculated.
-Fifth, methods can be determined to minimize waste and losses arising from production stages.
-Sixth, costs should be calculated to minimize waste and losses. It should not be forgotten that there are certain costs to consider the efficiency processes created.
-Seventh, create and implement an efficiency improvement plan. Once this plan is complete, it is necessary to repeat steps 4 through 7 continuously to ensure continuous improvement.

CD processes in ALP application

You do not have to do any calculations during the CD process. Identify your losses, the rest our application automatically calculates the data with graphs and tables. You can easily access lost forecast information for the next year with our application. Plan projects to compensate for losses, and plan these projects by considering the intensity of knowledge of your staff. You can see the flows, planned and realized parts of the projects annually and follow the current data information month by month from the tables.