This article explores the various components of production costs and the factors that lead to their escalation, such as inflation, technological advancements, and market shifts. It emphasizes the need for a problem-solving culture as one of the Effective Cost Reduction Strategies in Production. The article highlights hidden opportunities for cost reduction through process optimization and provides a simple strategy for reducing production costs by categorizing operations and improving or eliminating them accordingly. Production costs Production cost refers to the total expenses incurred in making a product or providing a service, including materials, labor, and related costs. For a more detailed…