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The cost includes value-added cost and non-value-added cost, the direct production cost of general manufacturing enterprises is value-added cost, and the corresponding logistics and inspection cost is non-value-added cost. Raw materials, equipment, water, electricity, people, etc. are necessary costs in value-added costs, and under the premise of ensuring quality, there is a limit to the cost; Rather than value-added costs, they can be reduced indefinitely. We reduce costs by reducing non-value-added costs as much as possible at the lower limit of necessary costs.
Value stream analysis is an effective tool for enterprises to reduce costs, and the use of effective tools can make cost-reducing activities twice as effective with half the effort.
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When it comes to costs, many companies think that it is the finance department or cost accounting, while most employees think, "I am not the boss, the cost has nothing to do with me"; "Public things, don't use them in vain"; "What's in it for me to save costs? ”
In fact, cost reduction requires everyone's participation. First of all, as the decision-making level of the enterprise, it is necessary to have the concept of investment, which is the basic condition that determines and affects the formation of enterprise costs; The second is the engineering staff and management personnel of the enterprise, who affect the consumption level of product design and production costs; The third is the company's first and sales department employees, their business activities affect the procurement cost of materials and materials and the early level of product sales expenses. So, the cost is closely related to everyone.
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Enterprises reduce production costs.
In order to survive and develop, enterprises must work hard to improve their internal skills, take various measures to reduce costs, and carry out production and operation at a cost lower than that of competitors.
Enterprises can be invincible in the competition. Therefore, modern enterprise management must pay more attention to cost and management methods.
It has to be more scientific. Some suggestions on reducing production costs and improving product quality: 1. Cultivate the cost awareness of all employees in cost management.
The main reason for the impact on the cost of the enterprise is people, cultivate the cost management awareness of all employees, create an atmosphere that makes each employee care about the cost, and enhance the management concept of success or failure of all employees, each employee is the master of the enterprise, and each position may cause unnecessary waste. Establish the concept of reducing product costs, ensure and improve product quality, and control the cost of products to a large extent. 2. Organize balanced production and implement the production plan.
The production department should make full and effective use of production equipment according to the production tasks issued by the factory department, reasonably arrange the labor force, implement the task to the process or team, and the balance of the actual product, which is conducive to improving labor efficiency, ensuring product quality, and creating conditions for reducing production costs. Third, the use of advanced technology and advanced technology. The production department should assist the technical department to do a good job in product standards and process design, in the production process, grasp the weak links, tap the potential, try to reduce the consumption of raw materials and energy, save man-hours, and reduce product costs.
Fourth, strengthen quality inspection and improve product quality. From production to completion, all processes and links of the production department should strengthen inspection, and do a good job of self-inspection and mutual inspection; Strictly control the quality to ensure product quality and reduce waste loss, which is an important measure to reduce finished products. 5. Optimize labor organization and improve labor productivity.
To make the labor organization reasonable, it is necessary to have a fine division of labor and strict coordination and cooperation, give full play to the strengths of the laborers and arouse the enthusiasm of the laborers, so as to improve the efficiency of labor and production. 6. Strengthen the repair and maintenance of equipment, and improve the intact rate and utilization rate of equipment. Each department (workshop) formulates a plan for the operation, repair and maintenance of machinery and equipment, and carries out maintenance work according to the plan, which can not only reduce repair and maintenance costs, but also improve products and quality, so that production costs continue to decrease.
Seventh, according to the company's situation, improve the purchase system, and timely implementation, so as to achieve the purpose of reducing costs, strict implementation of procurement approval and warehousing process, to put an end to excessive backlog of hardware and inferior parts warehousing. 8. All employees carry out publicity activities of diligence and thrift. From now on, start from me, carry forward the excellent tradition of diligence and thrift, and start from saving a piece of paper, a drop of oil, and a screw.
Establish relevant systems to reward departments and employees who are diligent and thrifty (including recycling), so that each employee realizes that diligence and thrift are their own responsibilities and obligations.
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There are many ways to improve quality and reduce costs, you can try to cook your own meals, you can shop online.
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Improving technology to achieve the premise of not changing or improving quality can reduce the use of materials, become faster and reduce costs.
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Generally, there are two parts of cost in business operation, one is the explicit operating cost, and the other part is the implicit capital cost. The main reason for the high cost of many enterprises is the great waste of resources in the business process, and the method of reducing the high cost of capital, summarized by Gutang Enterprise Management Consulting Company, for reference only.
1 Fixed costs are minimized, and the key points for reducing fixed costs are as follows:
1) Liquidation of invalid assets, liquidation of assets that do not participate in production and business activities, and (2) Unnecessary fixed assets are used as much as possible through leasing and other means, and the fixed cost expenditure is turned into current cost expenditure.
3) Analyze your own strengths and outsource the production process that you do not have advantages as much as possible.
2 Minimization of flow costs and acceleration of turnover.
1) Reduce material costs.
2) Reduce personnel costs.
3) Reduce accounts receivable.
4) Rationalize the cost of technological innovation.
5) Reduce management costs.
3. Strive to use upstream and downstream funds.
1) All the cost assets that need to be spent are prepaid by the upstream ** business as far as possible, and strive to pay after a turnover.
2) All revenues are required to be prepaid by the buyer or received pre-sale payments as far as possible.
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The cost of quality is also known as the cost of quality. It is a part of the total cost and includes the expenses incurred to ensure satisfactory quality, as well as the tangible and intangible losses of not achieving satisfactory quality.
We can divide the cost of quality into two parts: the cost of control loss (or the cost of failure), and the cost of control is related to the activity of eliminating defects from the production process. Eliminating defects can be achieved in both prevention and identification.
Prevention costs include the cost of activities such as quality planning, review of new products, training of personnel, and engineering analysis. These activities take place before the product is put into production, and their purpose is to prevent defects before they occur. Another type of cost control is the cost of identification or inspection, the purpose of which is to eliminate the defect after it has appeared, but before the product is delivered to the user.
The cost of loss, also known as the cost of failure, can be incurred during the production process (internal loss cost or internal failure cost) or after the product is shipped (external loss cost or external failure cost). Internal loss costs include non-conforming product loss costs, repair costs, quality degradation costs, and machinery and equipment shutdown loss costs. The cost of external losses includes claims fees, return loss fees, discount loss fees, etc.
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