ABSTRACT
Manufacturing consists of three basic flows: the flow of materials, the flow of information, and the flow of costs. In practical factories, reduction of costs is especially important; this activity is continually processed through industrial engineering (IE) and value engineering (VE) techniques. Cost engineering, engineering economics or cost management greatly assists this activity. A term 'cash flow' is also used to express the cash stream inside/outside a company. Cash is provided as the funds or capital for operating a manufacturing firm either by its own assets obtained through sale of stocks, or by borrowing from banks. The funds are used to install production facilities and procure raw materials, and also used as wages paid to the employees, to manage the company, and to sell the products. Cost can be materialised by monetary units. Money/capital changes with time.
