Rapid Unit Cost Reduction

Unit cost is the cost per unit of output. The unit can be a radio, automobile, engineering analysis, bill or patient treated. It directly relates to prifits of operation. The lower the unit costs, the easier it is for the company to survive market downturns or a sharp increase in competition. Unit cost consists of three elements: labor costs, material costs and process costs. PII takes an integrated approach to identifying the areas that can yield the most unit cost reduction. Without this approach, the benefits are fewer and temporary.