In today’s challenging competitive environment, cost optimization is critically important for mill operations to achieve sustainable profitability. Fluctuations in raw material prices, increasing energy costs, and operational expenses necessitate effective cost management strategies. As Tanış A.Ş., with our over 60 years of sector experience, we help mill operations optimize their costs to gain competitive advantage.

Cost Items and Distribution Analysis

Typical cost distribution in mill operations:
Raw Materials: 70–80% (wheat and other grains)
Energy: 8–12%
Labor: 5–8%
Maintenance-Repair: 3–5%
Packaging: 2–4%
Other Expenses: 2–5%

For effective optimization, proper separation of fixed and variable costs and detailed analysis of each cost item is required. Regular monitoring and reporting of costs enables early detection of anomalies.

Mill Capacity Utilization and Unit Cost Relationship

The high fixed costs in mill facilities bring with them a significant impact of capacity utilization rate on unit costs. Low capacity utilization increases unit costs due to fixed costs being reflected in fewer products.

For optimum capacity:

• Production planning based on demand forecasts

• Flexible shift systems

• Adaptation to seasonal demand fluctuations

• Determination of minimum economic production quantities

Yield and loss rates are factors that directly affect cost:

• Wheat Cleaning: Reducing losses through effective cleaning

• Tempering Optimization: Milling efficiency with correct moisture ratio

• Milling Parameters: Roller settings and sieve performance

• Packaging Precision: Optimization of filling tolerances

A 1% improvement in mill yield provides significant cost advantage in high-capacity facilities.

Cost Accounting and Analysis Techniques

With correct accounting systems and analysis techniques:

• Activity-Based Cost Analysis

• Target Costing

• Process Costing

• Variance Analysis

Wheat Supply Strategies and Cost Management

• Strategic Purchase Planning

• Supplier Diversification

• Long-Term Agreements

• Direct Farmer Relations

• Quality-Price Balance

Wheat Blend Optimization and Cost Effectiveness

• Linear Programming

• Trial Millings

• Dynamic Recipe Adjustment

• Alternative Grain Usage