What is the main link to reduce the cost of products?

Commonly used cost reduction measures are mainly for the control of variable costs, such as: material costs (procurement costs, process costs, material consumption costs), energy (reasonable use of coal, water and electricity), period fees (strict control of expenses and sales fees), etc., and the methods adopted are: quota control, contracting assessment, etc.

In addition to direct labor, direct materials and manufacturing costs, spontaneous current liabilities should also be managed, and efforts should be made to use commercial credit to create internal capital flows, such as improving accounts receivable turnover and inventory turnover rates, and speeding up capital flow If the transportation costs are large, logistics management should also be carried out specifically to reduce transportation expenses

Personally, I think that it is difficult to reduce the cost of materials, and it is only feasible to improve production efficiency. If this doesn't work, then you have to make small profits and sell more, earn less and sell more!

Mitigation measures:1. Improve operation and management, adopt new technologies, and improve equipment utilization.

2. Reduce fixed assets.

The consumption of raw materials, fuel, auxiliary materials, and labor productivity are improved.

3. Implement quota management to reduce manufacturing costs.

4. Strengthen budget control and reduce period costs.

5. Implement comprehensive cost management and reduce the cost level in an all-round way.

6. Supervise the formation of costs. This is to regularly inspect, evaluate and supervise each project of cost formation according to the control standards. It is necessary not only to inspect the implementation of the indicators themselves, but also to inspect and supervise the conditions that affect the indicators.

Cost as a commodity economy.

The value category is a component of the value of the commodity. If people want to carry out production and business activities or achieve certain goals, they must consume certain resources, and the monetary performance of the resources they spend and their objectification are called costs. And with the continuous development of the commodity economy, the connotation and extension of the concept of cost are constantly changing and developing.

Cost Component Contents:

1. The cost of raw materials, materials, fuel, etc., expresses the value of the labor objects that have been consumed in the production of goods.

2. Depreciation expense, which shows the value of the labor materials (means) that have been consumed in the production of goods.

3. Wages show the value created by the necessary labor of producers.

The answer to reduce the cost of the method is as follows: 1, the daily control of material costs: workshop constructors and technical inspectors to supervise the operation according to the drawings, technology, tooling requirements, the implementation of the first inspection, to prevent batch scrapping, workshop equipment personnel to supervise the maintenance and use of equipment according to the requirements of the process regulations, do not meet the requirements can not start production, the first department of materials to be in accordance with the provisions of the variety, specifications, materials to implement the quota of materials, supervision of receiving, replenishment, return and other systems of implementation, Production schedulers should control the production batch, reasonable blanking, reasonable feeding, supervision of the implementation of the period of standards, the daily control of the workshop material cost, generally responsible for the workshop material accountant, it should often collect materials, analyze and compare, track the reasons, and in conjunction with the relevant departments and personnel to propose improvement measures.

2. Daily control of wages and expenses: mainly the supervision and control of workshop labor-management personnel on the production site of working hour quotas, attendance rate, working hour utilization rate, adjustment of labor organization, bonuses, allowances, etc., in addition, production scheduling personnel should supervise the reasonable arrangement of the internal operation plan of the workshop, and should reasonably put into production, reasonably dispatch workers, control nest workers, stop work, work overtime, overtime, etc., workshop labor-management personnel (or quotas) are responsible for the control and accounting of the above relevant indicators, analyze deviations, and find reasons. 3. Daily control of overheads:

There are many items of workshop funds and enterprise management fees, and the situation is different, there is a quota according to the quota control, and there is no quota according to the cost budget to control, such as the use of expense manual, the cost coupon (also called the promissory note, the enterprise circulation coupon) and other forms to implement control, each department, workshop, team is responsible for the control and supervision by the relevant personnel, and put forward suggestions for improvement.

The second is to reduce the cost of time.

The third is to reduce circulation costs and inventory costs.

Fourth, reduce operating costs.

Fifth, reduce management costs and labor costs.

Sixth, reduce office expenses and marketing expenses.

1. Reducing business is the most direct and effective method, and the direct means is to close the production line, stop operations, lay off employees, and improve assets, but this way will directly affect the production and operation of the enterprise.

2. Improve operational efficiency, such as optimizing product design and reducing cost consumption; Improvements to machinery to reduce energy consumption; Train personnel to improve production efficiency; Optimize the first chain and reduce procurement costs; Strengthen budget management and reduce various costs; Cut unnecessary expenses and non-essential costs.

To reduce costs, we can adopt the method of value chain analysis, and analyze each item according to the value chain, and streamline and optimize the links with little value contribution to reduce costs.

We will further promote the "three zeros" and "three provinces" services and reduce the cost of electricity for enterprises

The first is to implement the "three provinces" service for large and medium-sized enterprises. For 10 kV enterprise users in provincial-level and above parks and included in the provincial-level new and old kinetic energy conversion project library, the investment interface of the power supply company extends to the red line of user planning. Invest 78.62 million yuan to build supporting power grids for 39 high-voltage customers, and all customer demarcation switches and transformers are provided free of charge by the power supply company.

The second is to implement the "three zero" services for residents and small and micro enterprises. The city's reported installed capacity of 160 thousand volt ampere and below residents and small and micro enterprises fully implement low-voltage access, has invested in 297 small and micro enterprises to electric energy meters, a total of 37.41 million yuan.

The third is to provide enterprises with electricity financial services. Promote service products such as electricity e-profit, electricity e-loan, and electricity e-ticket, and provide customers with low-cost, convenient and fast financing channels. Provide substation energy hosting services for Tianhong Chemical to alleviate the pressure on the start-up capital of the enterprise.

Provide leasing services for 30 sets of 1000 kVA transformers for CNOOC storage project, which can save customers 360,000 yuan in energy costs every year.