Yang Wangyuan s thoughts on how to reasonably reduce costs

Business operation has reached the era of meager profits, how to increase the cost of the industry, but the product is reduced to improve the profit of the industry? Improving production efficiency and saving costs has been a new topic in front of the industry. For example, how to save costs, and what ways to save them?

To improve production efficiency, how to improve production efficiency, and what methods to improve?

For these problems, combined with the methods in reality, take a hardware processing factory as an example, and see how the author solves them

1. A hardware processing factory is generally composed of mold department, manufacturing department, surface treatment department, assembly department or assembly department and some management departments (personnel, business, finance, information and sales, etc.). In these departments, the mold department and the manufacturing department are the key departments (the general mold department belongs to the technology center, and the technology center is mainly responsible for the technical problems of process and mold design and other related products), why is it a key department, because the cost they occupy is the largest cost, accounting for about 70%-90% of the cost of a product, so how to control the cost should start from the technical aspect, the significance of controlling the salary of employees is not very large, and the salary of employees is also given according to the local level. It's not given casually, so if the employee's salary is changed, for a small company, one person is more than 150 a month, and if it is calculated according to 500 people, it is only 75,000. 75,000 is just the cost of a set of molds, so in order to increase profits, we must strive for technology.

2. Another is that the length of the manufacturing cycle of samples and products is also the key to the cost, the shorter the cycle of the sample, the better it is to reflect the strength of the company, and the easier it is for customers to place orders, and it is easy to make money. The production cycle of samples or products is composed of various departments, not one department can solve it, so each department must cooperate with each other to achieve the purpose of short production cycle. The production cycle is directly related to the mold production cycle, and even the mold production time accounts for more than 60% of the time of the entire sample production, so controlling the mold time is also a major strategy to reduce costs.

1.Reduce costs with modern management.

In order to reduce costs, we must grasp the outline of management. All enterprises should combine the implementation of cost target management with the economic responsibility system, strengthen cost accounting, strengthen management in production, supply, marketing, finance and other links, and refine each of the raw materials, auxiliary materials, fuel, power, wages, manufacturing costs, administrative expenses and other items in the production cost into the unit product cost, so that the cost accounting into the workshop, into the team, to the head. Change the static control of the cost to the dynamic control, form a full-staff, the whole process, all-round cost control pattern, so that the cost reduction is implemented in the specific actions of each employee.

On this basis, the first is to strengthen the best management and control the cost of materials. Enterprises should formulate a catalogue of procurement raw materials to control, implement the method of price comparison procurement, implement the practice of shopping around, select the best to buy, so that the same quality buys at a low price, the same price buys nearby, the same quality and the same price, and can be used domestically without imports, so as to achieve the purpose of reducing costs; Second, it is necessary to strengthen material management and reduce the consumption of physical and chemical labor. The level of material reserves and consumption directly affects the rise and fall of product costs.

Therefore, all enterprises should implement strict control from the formulation of material consumption quotas to the distribution of materials.

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