CONTROLLING INDIRECT COSTS MITIGATES WASTE, SAVES ON YOUR BOTTOM LINE

In addition to the direct costs of inventory and shipping, Amtech understands the indirect costs of production. Indirect material, equipment and process costs are things related to the production and supply of your products that are not directly assignable to individual items.

Direct materials present Amtech a very tangible thing we can control on an ongoing basis. However, indirect material, equipment and processing costs are not as easily grasped by many firms. Amtech takes the cost of the variables associated with production seriously.

Utilities, machinery, factory tools, chemicals, metals, processing and host of other items can all be classified as indirect material, equipment & processing. Careful planning and excellence in operations management represent opportunities to optimize these costs. These costs vary with the amount of produced, but these can't easily be assigned to individual orders and projects.

Indirect costs are managed by maximizing process yield. Careful attention is given to planning, workload,customer demand and available capacity. Swift action on the part of our shop floor management levels workloads and dynamically works to mitigate waste as product demand and production loads vary. In a lower volume, high mix assembly environment that Amtech thrives in, this is an area we monitor closely. By taking initiative in the area of indirect cost, we are able to maintain our margins while providing lowered costs to our customers.