This paper presents the basic production processes in a pallet factory. The first section provides information about the factory, the status quo, problems and losses in production. In the second part, the focus is on proposals for improving the production, using 5S, Kaizen, visual management and Poka Yoke methods. The third part is a performance and achieved results of implemented and proposed improvements. The last part of the paper refers to reducing the cost of transport by introducing external DDF (diesel dual fuel) system, where the result is reduced fuel consumption. Throughout the work, constant analyzes and improvements were made, which led to a reduction in inventory, transportation, costs, losses and defective products.