How to Calculate the Cost per Unit as per Lean Manufacturing.

In this article, you will learn how to calculate the cost per unit as per Lean 6 Six Sigma and Lean Manufacturing.

Cost per Unit Definition

The cost per unit (CPU) is calculated when a company produces a large number of identical products and needs to establish a fair price of sale with a positive income profit.

This information is then compared to budgeted cost information to see if the organization is producing goods in a cost-effective manner.

How to Calculate the Cost per Unit:

The cost per unit is derived and calculated from the variable costs and fixed costs incurred by a production process, divided by the number of units produced.

Typically, companies are looking to reduce the cost per unit to increase their profits.  The most common way to do it is to reduce the variable cost and fixed costs using lean 6 six sigma techniques.

In other cases companies can reduce the cost per unit, increasing the number of units produced and maintaining controlled variable and fixed costs using lean manufacturing techniques.

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Our Lean Manufacturing team could provide you a broad range of professional expertise implementing these techniques and tools.

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Three (3) Options to Create Document Control Management DCM Procedures:

Bronze Option. You Can Create Your Own Quality Procedures, using a Template.

You can download samples of the Document Control Management DCM procedure templates in .pdf format. 

To see the complete list of the most popular quality procedures templates, click here.

In addition, you can request a quotation to buy online a full SOP template document in MS Word format that is completely editable, ready to fill, and adapt to your specific needs.

Silver Option. We Can Bring You Formal Training about how to calculate the cost per unit.

This option is recommended if you want to learn more about how to build robust quality system procedures. One of our expert(s) can provide online step-by-step training to your team (unlimited assistance) on how to build reliable SOPs using our template(s). Also, you can improve your corporate quality procedures and policies by incorporating our template(s) and tools.  It includes a fully editable template from the Bronze option, plus training, exams, and a training certificate for each assistant.  Request a quote now.

Gold Option. We Can Create Customized Quality Procedures.

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REFERENCES: How to calculate the cost per unit.

httpss://en.wikipedia.org/wiki/Lean_Six_Sigma

httpss://www.greycampus.com/blog/quality-management/a-brief-introduction-to-lean-and-six-sigma-and-lean-six-sigma