In order to improve efficiency and reduce costs, factories should start from these five aspects.

If factory enterprises want to seek economic benefits and obtain sustainable competitive advantages in the increasingly fierce market competition, they must strive to enhance their competitive advantages, carefully calculate, strengthen cost management and control, and strive to find various effective ways and methods to reduce costs.

The management of factories and enterprises is inseparable from two things: increasing turnover and reducing costs. Enterprise development is inseparable from sales. It stands to reason that the better the sales, the higher the turnover and the greater the development of the enterprise. In fact, an important factor that needs attention is cost control.

In general, the range of cost reduction is greater than the range of profit increase, that is, cost reduction 10%, and profit may increase by 20% or even more. Therefore, cost management is imperative. It affects the design cost, procurement cost, quality cost, sales cost, workflow, capital occupation and inventory reduction of products.

Good cost control management can reduce product costs, improve the production capacity and resource utilization rate of enterprises, improve market competitiveness, promote the improvement of enterprise management level, be conducive to the sustainable development and improvement of enterprises, and ultimately improve the profitability of enterprises.

Cost control is a cost management goal set in advance by enterprises according to a certain period. The process of cost control is a process of calculating, adjusting and supervising all kinds of expenses in the production and operation of enterprises by using the principles of system engineering, and it is also a process of finding weak links, tapping internal potential and finding all possible ways to reduce costs. To reduce product costs, enterprises should start from the following aspects.

1

Financial field control

1, to improve the level of capital operation, we must first increase revenue and reduce expenditure; Secondly, it is necessary to implement fund tracking management and strengthen the dispatch and use of funds; Third, we should reduce the inventory ratio and strengthen inventory management. Through the above measures, we can reduce capital occupation, optimize capital structure, rationally allocate funds, speed up capital turnover and reduce financing costs.

2. Financial personnel should pay special attention to the work before, during and after the cost, and pay special attention to the work of cost prediction, decision-making and cost planning beforehand; Do a good job in cost control and accounting; Do a good job of cost evaluation and analysis afterwards. We should tap the potential of cost reduction and benefit from the height of management.

3. Strictly control and save expenses. Keep the expenses under control as little as possible and save expenses, such as materials and travel expenses. Enterprises should abide by the financial management system, persist in setting up factories diligently, oppose extravagance and waste, minimize manufacturing costs, save production costs, strictly control period costs and reduce non-production costs.

2

Policy management domain control

1, technical innovation, seeking a new way out. After the cost is reduced to a certain stage, enterprises can only reduce the cost through innovation, reduce the consumption of raw materials through technological innovation or find new cheap materials to replace old expensive materials; Improve material utilization rate, reduce material loss, and improve commodity rate or first-class product rate from the perspective of process innovation; Improve labor productivity and equipment utilization rate from the innovation of workflow and management mode, and reduce the labor cost and fixed cost content of unit products; In order to increase sales volume and reduce the marketing cost of unit products from the innovation of marketing methods, only through continuous innovation of enterprises, encouraging innovation with effective incentives, and starting from innovation, is the fundamental way for enterprises to continuously reduce costs.

2. Set production by sales to avoid the backlog caused by blind production of unsold products. The decision-makers of enterprises should make more accurate sales forecasts and determine how many products the enterprises can sell in the near future. Wrong sales forecast is a common problem in most production and management, and it is a costly waste.

three

Procurement site control

Generally speaking, the purchasing department should prepare according to the production plan of the enterprise, and the production plan of the enterprise should be formulated according to the sales plan, which is closely linked. As long as there is no big deviation in the sales plan, the purchase plan is generally reasonable. To achieve procurement management, we must do the following:

1, using scientific decision analysis methods, reasonably determine the economic order quantity or economic batch, determine the procurement items, select suppliers, and decide the procurement time;

2. Further promote the centralized procurement system, establish a unified procurement platform for foreign services such as raw materials, and realize the sharing of resources such as prices and suppliers;

3. Promote the direct supply system and gradually cancel the intermediate suppliers; Establish procurement responsibility system and strengthen the sense of responsibility of procurement personnel and price assessors;

4, rectify the purchase price of spare parts and sporadic materials, the purchase price should be gradually reduced on the basis of the previous purchase sales price;

5, explore the establishment of procurement rewards and punishments system, rewards and punishments should be linked to leaders and individuals; Strengthen technical research and reduce procurement costs.

four

Production site control

1, improve equipment utilization rate, organize production reasonably, and avoid uneven equipment busy and idle; Strengthen equipment maintenance and improve equipment integrity rate. Arrange shifts reasonably, increase the actual working hours of equipment, and implement specialization and cooperation. , which can reduce the depreciation expense of fixed assets per unit product.

2, optimize the workflow, starting from the procurement of raw materials, until the final product or service, reasonable formulation of raw materials, fuel, auxiliary materials and other materials cost quota; Strictly improve the system of measurement, inspection and receiving and returning materials; Improve the original records of products, output, variety, quality, raw material consumption, attendance and equipment use, and provide effective, systematic and accurate information for the financial statistics department.

3, reduce inventory, inventory will not produce any added value, it not only occupies space, capital, but also produces handling and storage needs, devouring financial assets. And with the passage of time, on the one hand, the corrosion and deterioration of inventory will produce waste; On the other hand, due to the pursuit of Excellence, technological progress and the improvement of competitors' products, products will become waste products overnight. In order to reduce inventory, we need to reduce the quantity and unit price of inventory. Therefore, it is necessary to correctly calculate the acquisition cost, storage cost and out-of-stock cost, and control the inventory quantity and amount in the best range.

4. Controlling personnel costs, streamlining personnel, reasonably creating posts and personnel quotas, controlling labor input, streamlining personnel and reasonably creating posts and personnel quotas are the basis for strengthening employment management, and also the basic work for saving labor and reducing labor costs.

5. Fully mobilize employees' enthusiasm, ensure effective cost control, comprehensively improve the quality of enterprise, implement the responsibility to departments or individuals, improve the income distribution system, strengthen organizational incentives, strengthen personal incentives, implement rewards and punishments, and mobilize the enthusiasm of all employees.

6. To control the quality cost, it is necessary to break the old idea that improving quality will increase the cost and reducing the cost will damage the quality. Improving the quality will actually drive the cost down. In order to improve the quality cost, we must strengthen the quality in the process of work, so as to reduce the loss of waste products, reduce work, reduce rework time, reduce resource consumption, and then reduce the total operating cost.

five

Sales site control

1. Control the cost of sales. While expanding sales results and increasing market share, sales departments should strengthen the use efficiency of sales expenses and relatively reduce costs. First of all, the sales department should study and promote the marketing system of sales services to reduce costs by scale operation; Secondly, the business department should seriously study the national and local tax policies and make reasonable tax planning for the branch; Third, the sales department should use economic decision-making methods to reduce transportation costs; Fourthly, the sales department should use the optimal cost decision to improve the efficiency of advertising fees.

2. Reduce logistics costs and reduce logistics costs through efficient distribution. Enterprises can realize efficient distribution, reduce transportation times, improve loading rate, reasonably arrange car allocation plan and choose the best transportation mode, thus reducing distribution costs.

The key to reduce costs and improve profits in factories and enterprises is to implement cost control, which is closely related to the basic management of enterprises. Only by improving the management level, cutting costs, reducing costs and increasing market share can factories and enterprises be possible.