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Impact of Engineering on Operations Cost
Impact of Engineering on Operations Cost

Let's say we have built one factory with bad engineering and another one with good engineering. How do they really differ in terms of Operations or Running Costs?

The good engineering factory, will run smoothly and require the minimal focus and time of the operations and management team. Hence, not only will the factory have low maintenance costs, but the people shall have time to spend on improvements and optimizations, leading to a reduction in operations cost year-on-year.

The bad engineering factory will have a high cost of operations due to quality rejections, production breakdowns, and related costs of repairs and spares. The factory team shall be mostly occupied with production and maintenance, leaving no time or motivation for any process improvement or optimization.

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