What are the ways for enterprises to reduce costs?

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How can enterprises reduce costs?

1. Reduce costs through modern management

In order to reduce the cost, we must master the management principles. 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 of production cost, such as raw materials, auxiliary materials, fuel, power, wages, manufacturing expenses and management expenses, to the unit product cost, so as to achieve cost accounting to the workshop, team and personnel. Change the original static control into dynamic control, and form a full-staff, whole-process and all-round cost control pattern, so that cost reduction can be implemented in the specific actions of each employee. On this basis, the first is to strengthen supply management and control material costs. Enterprises should draw up raw material purchasing catalogue, control prices, implement price comparison purchasing method, shop around and choose the best, so as to buy the same materials at a low price, buy them nearby at the same price and use them at the same price, 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 implement strict control from the formulation of material consumption quota to the distribution of materials. For consumables such as raw materials, it is necessary to implement quota classification management, focusing on order batches and inventory reserves. According to the principle of applicability, timeliness, integrity and economy, the use plan should be issued, and combined with the financial revenue and expenditure plan and the order contract, and included in the economic responsibility system assessment. Carry out systematic control and target management on all kinds of consumption that affect the cost to prevent all kinds of unnecessary waste, so as to achieve reasonable storage and use of materials, reduce costs, improve efficiency, ensure the reasonable needs of production and reduce capital occupation; 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, and we should not rush to deliver the goods, let alone engage in "emotional transactions" and "gentleman's agreements" to avoid unnecessary economic losses. The salaries, bonuses, travel expenses, subsidies, business expenses, handling fees, short-distance transportation fees, transit fees and other expenses of business personnel should be saved. 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 costs and control expenses through simulated market accounting, improve economic benefits, avoid the practice of using funds without cost because of unplanned use of funds, irregular expenditure, repeated endorsement by many people and serious capital loss, strictly strengthen the management and control of funds, make all employees feel the pressure of market competition, and change from several accounts to personal financial management, especially strengthen the accounting of administrative expenses and some business expenses, including management. In this respect, according to the different nature of the work undertaken, the cost base of each person in charge should be calculated for control assessment, and each pencil and each manuscript paper should be paid from the contract amount.

2. Reduce costs through technological transformation

In recent years, the rising prices of raw materials and energy have a great influence on the rising cost. In the presence of these unfavorable factors, how to reduce costs and improve efficiency? Enterprises must establish the concept that technological transformation is an important way to reduce costs. Through technical transformation, new technologies, new processes and new materials are 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, take unconventional infrastructure and technical transformation management, choose the right time for the project, establish the project accurately and implement it quickly. On the premise of ensuring the quality, we should do everything possible to speed up the progress of the technical transformation project, reduce the construction cost and strive to recover the investment as soon as possible.

3. Reduce costs through deepening reform

Deepening enterprise reform, constantly stimulating workers' labor enthusiasm, improving workers' quality, and establishing a lean and efficient operation mechanism to adapt to the market economy are also important links to reduce 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 "willingness, ability and kindness", implement the personnel system combining recruitment with appointment system, optimize the labor combination, compete for posts, and eliminate the fittest, so as to mobilize the enthusiasm of cadres and workers, improve labor productivity, enhance the sense of responsibility and crisis of enterprise cadres and workers, and mobilize all. Secondly, on the basis of scientific calculation of the amount of labor necessary to ensure the best cost target, we should improve the labor organization accordingly, approve the labor capacity, reform the internal distribution system, and reduce the consumption caused by excessive unproductive personnel, slowdown and insufficient labor. According to the working nature, process complexity, labor intensity, working environment and other factors of each department and workshop, each enterprise can adopt corresponding distribution forms, and lean towards the positions with bitter, dirty, tired, dangerous and high skills, so as to stimulate the labor enthusiasm of employees, 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 allocate management personnel in line with the principle of lean and efficient.

4. Reduce costs with excellent quality

There is a close relationship between product quality and product cost. In the case of fierce competition, whoever has high quality products will be competitive, and the products will have a market and will not occupy too much money; 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, so as to relatively reduce the proportion of cost in sales revenue; High-quality products can win more users, directly increase sales and reduce sales costs; The high quality of products 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, 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; The second is to formulate strict process standards and 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 will not be purchased into the factory, semi-finished products that do not meet quality requirements will not flow into the next working procedure, and unqualified products will 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 the quality of products, and at the same time, incorporate quality management into the assessment of economic responsibility system, implement the distribution principle of fine wages for high-quality and low-quality waste products, severely punish people or things that affect product quality for various reasons, enhance enterprise quality awareness and improve product quality; The fourth is to carry out mass quality management group activities and carry out quality research in a planned and organized way. For quality problems that affect product quality and are difficult to find for a while, they should be implemented in workshops and teams as the key research topics of QC team, and mass QC team research activities should be carried out, so that mass QC team activities can be carried out under the controlled state of organized leadership, active project, planned arrangement and inspection implementation, thus improving product quality.

5. Reduce the cost by optimizing the structure

The first is to 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 the enterprise's products can't be sold, resulting in a backlog, there is no way to reduce costs. Only when the products are diversified and the product structure is reasonable can we meet the needs of consumers at different levels, have a stable market, reduce the inventory and product capital occupation, and speed up the capital turnover. Only a reasonable product structure can accelerate product diffusion, implement diversified management, accelerate market penetration, increase market share, and thus achieve the purpose of reducing costs. Therefore, in production and operation, enterprises must realize their own shortcomings, 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 adopt advanced technology, improve the level of production mechanization and automation, strengthen production command and scheduling and other measures to increase production, so as to reduce fixed costs such as depreciation and interest included in product costs. At the same time, we should constantly innovate and optimize the product structure, adopt the strategy of "you have or not, you have more, you are more refined, you are more refined", increase the variety of colors, develop new products, follow the world development trend, and form different product structures in combination with the needs of consumers in different regions and at different levels, and gradually expand the product market.

The second is to optimize the capital structure. In the fierce market competition, enterprises should develop continuously to 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 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 production scale, reduce costs, improve market share and competitiveness, and achieve good results of reducing costs, increasing production, increasing sales and increasing profits. It depends on large investment, which will inevitably bring a heavy burden to enterprises in the current downturn of the whole market. 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 production scale, reduce costs, improve market share and competitiveness, and achieve good results of reducing costs, increasing production, increasing sales and increasing profits.