How can enterprises reduce costs and increase efficiency?

Large manufacturing industry is also composed of many manufacturing units, departments and factories. The cost of each factory department consists of fixed cost and variable cost. Cost changes are determined by direct materials, energy consumption and sales commission. Fixed expenses include depreciation, management expenses, research and development expenses, etc. In this way, we can look at this problem simply. The fixed cost is determined by the capacity utilization rate and the production and sales rate. The bottleneck process in your factory determines the capacity utilization rate, and the bottleneck determines the output of the system. Therefore, by increasing the bottleneck capacity, the overall capacity can be improved and the fixed cost can be reduced, with a huge proportion and huge space. According to our practice and research, 90% factories have 10~30% capacity waste. So there is room for profit growth of 10-30%. For variable costs, most of them are determined by the market, and the company has little room for change, but it is not impossible to reduce them. Mainly lies in the improvement of production technology, quality, employee efficiency, equipment performance and tooling efficiency. However, this requires some skills, experience and ability. Therefore, for this kind of saving, it is suggested to refer to the practices of Toyota and Foxconn and implement a continuous improvement system for all employees of the company. That is, through institutionalization, encouragement and protection, all improvement activists can participate in the company's cost reduction and efficiency improvement. Every time you complete one, you will get the corresponding economic and spiritual value reward, which is also linked to the regular assessment and promotion of each position. In particular, build an improved culture and explain this culture in one sentence: never blame problems, always improve and innovate! If you want to know how to promote continuous improvement, you are welcome to search my previous articles. The above suggestions are for your reference!

The following information is reproduced for your reference. How can enterprises reduce costs? 1. To reduce costs through modern management, we must grasp the key points of management. Enterprises should combine cost target management with economic responsibility system, strengthen cost accounting, strengthen the management of production, supply, sales and finance, and refine each item such as raw materials, auxiliary materials, fuel, power, wages, manufacturing expenses and management expenses. Convert it into unit product cost in production cost, so that cost accounting can enter workshops, teams and personnel. Static control becomes dynamic control, forming a full-staff, whole-process and all-round cost control pattern, so that cost reduction can be implemented in each employee's specific actions. On this basis, we must first strengthen supply management and control material costs. Enterprises should make a catalogue of purchasing raw materials, control prices, and implement the method of purchasing by comparing prices, shop around and choose the best, so as to buy the same quality at a low price, buy it nearby at the same price, and use domestic products at the same price without importing, so as to achieve the purpose of reducing costs. The second is to strengthen material management and reduce materialized labor consumption. The level of material reserve and consumption directly affects the rise and fall of product cost. Therefore, all enterprises should strictly control the formulation of material consumption quota and the distribution of materials, implement quota classification management for consumables such as raw materials, implement key control on order quantity and inventory reserve, issue use plans according to the principles of applicability, timeliness, completeness and economy, and combine them with financial revenue and expenditure plans and order contracts to be included in the assessment of economic responsibility system. Systematically control and manage by objectives all kinds of consumption that affect the cost, prevent all kinds of unnecessary waste, realize the reasonable storage and use of materials, reduce costs and improve efficiency, which not only ensures the reasonable needs of production, but also reduces the occupation of funds; The third is to strengthen marketing management and reduce sales costs. It is necessary to combine strengthening the legal awareness of sales personnel with strengthening sales management. Before every sales business happens, we should carefully investigate and approve the customer's operating conditions and affordability. Don't rush to deliver the goods, let alone engage in "emotional transaction" and "gentleman's agreement" to avoid unnecessary economic losses. Not only should we save wages, bonuses, travel expenses, subsidies, business expenses, handling fees, short-distance transportation expenses, transit links and other expenses. Fourth, we should strengthen fund management, control expenditure and save costs. Enterprises should establish and improve the financial supervision system, set up in-plant banks, reduce and control costs through the implementation of simulated market accounting, improve economic benefits, and avoid the practice of ignoring costs in the use of funds because of unplanned use of funds, irregular expenditures, multiple approvals and serious capital loss. Strictly strengthen the control of funds, so that all employees can feel the pressure of market competition, from a few to everyone. In particular, it is necessary to strengthen the accounting of administrative expenses and some operating expenses, including management. In this respect, according to the different nature of the work undertaken, the cost base of each head should be calculated for control assessment, and each pencil and manuscript paper should be paid from the contract amount. 2. Reducing costs through technological transformation In recent years, the rising prices of raw materials and energy have had a great impact on the rising costs. In the presence of these unfavorable factors, how to reduce costs and improve efficiency? Enterprises must establish the idea that technological transformation is an important way to reduce costs. Through technical transformation, new technologies, new processes and new materials can be adopted to improve the technical content of products and open up ways to reduce production costs. First, do a good job in technological transformation, actively adopt new technologies and processes to save energy and reduce consumption, fundamentally reduce the consumption of raw materials, and ensure the realization of cost control objectives while achieving product quality objectives; Second, in the implementation of technological transformation projects, we should pay attention to reducing the project construction cost and get more returns with less investment. On the one hand, we should adopt short, flat and fast technological transformation methods; On the other hand, unconventional infrastructure management and technological transformation should be adopted. The timing of the project should be accurate, the project should be accurate and the implementation should be fast. On the premise of ensuring quality, we will do everything possible to speed up the technical transformation project, reduce the project cost and strive to recover the investment as soon as possible. 3. Reducing costs through deepening reform, constantly mobilizing the enthusiasm of employees, improving the quality of employees, and establishing a lean and efficient operating mechanism that adapts to the market economy are also important contents for deepening enterprise reform and reducing costs. All enterprises should take deepening reform as an important task to reduce costs and increase efficiency. First of all, we should reform the personnel system, break the boundaries between cadres and workers, embody the principle of "willing, capable and good at doing things", implement the personnel system combining recruitment and appointment system, optimize the labor combination, compete for posts, and eliminate the fittest, so as to achieve the goal of "those who are capable are superior and those who are mediocre are inferior", thus mobilizing the enthusiasm of cadres and workers, improving labor productivity, enhancing the sense of responsibility and crisis of enterprise cadres and workers, and mobilizing the enthusiasm of all employees. Secondly, on the basis of scientifically determining the amount of labor necessary to ensure the best cost target, we should improve the labor organization accordingly, verify the labor ability, reform the internal distribution system, and reduce the consumption caused by excessive unproductive personnel, slowdown and insufficient employment. Within each enterprise, according to the working nature of each department and workshop, the complexity of process conditions, labor intensity, working environment and other factors, the corresponding distribution forms are adopted respectively, and the positions are inclined to those with bitter, dirty, tired, dangerous and high skills, so as to stimulate workers' labor enthusiasm, increase effective working hours, reduce the labor consumption and wage cost of unit products, streamline and merge functional departments according to the needs of production and business entities, and equip managers according to the principle of lean and efficient. There is a close relationship between product quality and product cost. In the fierce competition, whoever has high quality products will be competitive, and the products will have a market and will not occupy too much capital. The product quality is high, and there are no or few defective products, which can directly reduce the production cost; If the product quality is high, it can be sold at a higher price according to the principle of high quality and good price, which can relatively reduce the proportion of cost in sales revenue; The high quality of products, the serious phenomenon of winning the bid and the loss of funds have led to the practice of disregarding the cost in the use of funds. Strictly strengthen fund management and control, so that all employees can feel the pressure of market competition, from a few accounts to everyone's financial management. In particular, it is necessary to strengthen the accounting of management expenses and some business expenses, including administrative expenses, travel expenses, office expenses and other expenses of the management department. In this respect, according to the different nature of the work undertaken, the cost base of each head should be calculated for control assessment, and each pencil and manuscript paper should be paid from the contract amount. 2. Reducing costs through technological transformation In recent years, the rising prices of raw materials and energy have had a great impact on the rising costs. In the presence of these unfavorable factors, how to reduce costs and improve efficiency? Enterprises must establish the idea that technological transformation is an important way to reduce costs. Through technical transformation, new technologies, new processes and new materials can be adopted to improve the technical content of products and open up ways to reduce production costs. First, do a good job in technological transformation, actively adopt new technologies and processes to save energy and reduce consumption, fundamentally reduce the consumption of raw materials, and ensure the realization of cost control objectives while achieving product quality objectives; Second, in the implementation of technological transformation projects, we should pay attention to reducing the project construction cost and get more returns with less investment. On the one hand, we should adopt short, flat and fast technological transformation methods; On the other hand, unconventional infrastructure management and technological transformation should be adopted. The timing of the project should be accurate, the project should be accurate and the implementation should be fast. On the premise of ensuring quality, we will do everything possible to speed up the technical transformation project, reduce the project cost and strive to recover the investment as soon as possible. 3. Reducing costs through deepening reform, constantly mobilizing the enthusiasm of employees, improving the quality of employees, and establishing a lean and efficient operating mechanism that adapts to the market economy are also important contents for deepening enterprise reform and reducing costs. All enterprises should take deepening reform as an important task to reduce costs and increase efficiency. First of all, we should reform the personnel system, break the boundaries between cadres and workers, embody the principle of "willing, capable and good at doing things", implement the personnel system combining recruitment and appointment system, optimize the labor combination, compete for posts, and eliminate the fittest, so as to achieve the goal of "those who are capable are superior and those who are mediocre are inferior", thus mobilizing the enthusiasm of cadres and workers, improving labor productivity, enhancing the sense of responsibility and crisis of enterprise cadres and workers, and mobilizing the enthusiasm of all employees. Secondly, on the basis of scientifically determining the amount of labor necessary to ensure the best cost target, we should improve the labor organization accordingly, verify the labor ability, reform the internal distribution system, and reduce the consumption caused by excessive unproductive personnel, slowdown and insufficient employment. Within each enterprise, according to the working nature of each department and workshop, the complexity of process conditions, labor intensity, working environment and other factors, the corresponding distribution forms are adopted respectively, and the positions are inclined to those with bitter, dirty, tired, dangerous and high skills, so as to stimulate workers' labor enthusiasm, increase effective working hours, reduce the labor consumption and wage cost of unit products, streamline and merge functional departments according to the needs of production and business entities, and equip managers according to the principle of lean and efficient. There is a close relationship between product quality and product cost. In the fierce competition, whoever has high quality products will be competitive, and the products will have a market and will not occupy too much capital. The product quality is high, and there are no or few defective products, which can directly reduce the production cost; If the product quality is high, it can be sold at a higher price according to the principle of high quality and good price, which can relatively reduce the proportion of cost in sales revenue; High-quality products can win more users, directly increase sales and reduce sales costs; High product quality actually saves energy and raw materials; High-quality products can save manpower and management costs, which will undoubtedly reduce costs. Therefore, enterprises should attach great importance to improving product quality and do everything possible to strictly control product quality. First of all, we should strengthen the leadership of quality management. The factory director (manager) of the enterprise should personally grasp the quality, form a quality management network, feed back the quality information every day, conduct quality analysis and control the quality cost; Second, we must have strict process standards, implement systematic quality management in all aspects that affect product quality, such as supply, production and sales, so that raw materials that do not meet quality requirements are not purchased into the factory, semi-finished products that do not meet quality requirements do not flow into the next working procedure, and unqualified products do not leave the factory; Third, it is necessary to enrich the quality management force, improve the quality management system, establish a full-time inspection team, formulate quality inspection systems and standards that combine self-inspection, mutual inspection and special inspection, strictly control product quality, and at the same time, incorporate quality management into the assessment of economic responsibility system, implement the distribution principle of high quality and good price, good salary and excellent punishment, and punish people or things that affect product quality for various reasons, enhance enterprise quality awareness and improve product quality; Fourth, carry out mass quality management group activities and carry out quality research in a planned and organized way. Implement the quality problems that affect product quality and are difficult to find in workshops and teams, as the research topic of QC team, and carry out mass QC team research activities, so that mass QC team activities can be carried out under the controlled state of organized leadership, active topic, planned arrangement and inspection, thus improving product quality. 5. Reduce the cost by optimizing the structure. First, optimize the product structure. Whether the products of enterprises are welcomed by the market and whether they can occupy a certain share in the market is the basic premise of reducing costs. If an enterprise's products can't be sold, resulting in a backlog, it is far from reducing costs. Only with a wide variety of products and a reasonable product structure can we meet the needs of consumers at different levels, have a stable market, reduce the occupation of inventory and product funds, and speed up capital turnover. Only a reasonable product structure can accelerate product diffusion, implement diversified management, accelerate market penetration, increase relative market share, and thus achieve the purpose of reducing costs. Therefore, enterprises must recognize the shortcomings in their own production and operation, carefully analyze and evaluate the situation, change their production and operation strategies in time, limit production and switch to production for products with poor market situation and a large backlog of finished products, and increase production for selected leading products by adopting advanced technologies, improving the level of production mechanization and automation, and strengthening production command and scheduling. , thus reducing the fixed expenses such as depreciation and interest included in the product cost. At the same time, we should constantly innovate and optimize the product structure, adopt the strategy of "you don't have what you have, you have what you are good at, and you are good at what you are good at", increase the variety of colors, develop new products, keep up with the world development trend, and combine the needs of consumers in different regions and at different levels to form different product structures and gradually expand the product market. The second is to optimize the capital structure. In the fierce market competition, enterprises should continue to develop and enhance their ability to participate in market competition and resist market risks. However, development depends on large investment, and in the current downturn of the whole market, large investment will inevitably bring a heavy burden to enterprises. Therefore, enterprises should increase the flow and reorganization of assets, optimize the capital structure and realize the expansion of capital through mergers and leases, so as to expand the scale of production, reduce costs, improve market share and competitiveness, and achieve good results of reducing costs and increasing production, sales and profits. It depends on large investment, and in the current downturn of the whole market, large investment will inevitably bring a heavy burden to enterprises. Therefore, enterprises should increase the flow and reorganization of assets, optimize the capital structure and realize the expansion of capital through mergers and leases, so as to expand the scale of production, reduce costs, improve market share and competitiveness, and achieve good results of reducing costs and increasing production, sales and profits.

The most important thing for enterprises to reduce costs and increase efficiency is reasonable overall planning, manpower and material resources overall planning and time overall planning. Clean up the scum in the management team

First of all, you should know your own production process, then calculate the cost of each process by VE method, then find out the cost loss point and judge the necessity of improvement. If yes, take measures to improve, and then follow the PDCA principle. Besides, this matter can't be solved by one person. If the top management of the enterprise does not support it, it cannot be fundamentally solved. If you are interested, talk about it in detail.