In modern trade environmen, aproduct with competitive price is very important to ensure sales and profit from the product. In order to produce a product with competitive price, production cost must be reduced to mininum level. Optimise Producation Cost is a thesis written to look into the possibilities of cost reduction in manufacturing sector. In the project, existing organization and production system of Eveready Battery Company (M) Sdn Bhd. were studied, reviewed and analyzed. Areas which have potential to implement cost reduction were identified. Proposal for cost reduction i smade inventory, scrrap and material or work tansportation in factory, which may lead to reduced production cost.