For gaining more profit from an industry, cost of various operations of the industry should be brought to optimal minimum It is best to cause a reduction in production cost which requires a proper planning of the production schedule aimed at the optimum utilization of both the manpower and material sources resulting in minimum wastage of time and material. Various operations should be so planned that the output of one coincides with the input of next and idle time caused by various reasons avoided. Proper incentive and motivation should be given to workers Proper quality control, record of it over a period of time for evaluation, standardization of raw material and finished product, routine and preventive maintenance of machines, proper procurement and a purchase policy, efficient sales staff and a proper management of personnel all are necessary for making reduction in production cost.