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Eight Tips For The Foundry To Reduce Costs And Increase Efficiency


First, enhance the concept of cost, implement the cost management of all staff
All cost management activities of enterprises should be guided by the concept of modern cost-effectiveness. It is necessary to realize that the acquisition of cost advantage is absolutely not limited to the cost itself. The potential of reducing costs and gaining benefits should be explored from the management level. It is necessary to provide cost information to managers in a timely and comprehensive manner so as to raise employees awareness of cost management and enhance cost concepts. Through cost analysis, evaluate the performance of managers and promote managers to take improvement measures.
Second, strengthen the two basic work of cost control and cost accounting
First, strengthen the basic work of cost control: rationally formulate the quota of materials such as raw materials, energy supply, auxiliary materials, etc.; strictly improve the system of measurement, inspection and material receipt and withdrawal; improve product, output, variety, quality, raw material consumption, Original records such as attendance and equipment use; establish a settlement price system within the enterprise, and settle the materials, products and labor services provided by various internal departments at a reasonable planned price. The second is to strengthen the basic work of cost accounting. Such as the establishment of strict cost scope and standards; correctly divide the various cost limits. Adopt a suitable cost calculation method for the enterprise. Third, improve the economic responsibility system of cost management institutions
(1) Establish a scientific and reasonable cost information management system. Construction of a matrix cost management team including the heads of management, accounting, supply, sales, production, technology, etc.; all relevant departments should also be equipped with part-time personnel to carry out such as statistics, attendance, quality inspection, custody, accounting, analysis, internal Review and other work. Cost management personnel should be regularly trained in professional training, thinking and knowledge re-education to improve their expertise in cost management and open up a broad way to reduce costs.
(2) Improve the economic responsibility system of cost management. The first is to formulate cost management rules and regulations, such as basic management and cost constraint systems; second, to clarify the economic responsibilities of various costs, to implement responsibilities to departments, units or individuals, and to refine and implement market profit management to individual employees. The third is to implement rewards and punishments, and implement the cost management and personal performance linkage mechanism.
Fourth, the use of modern scientific cost management methods and means
(1) Adopt modern cost management methods and computer management. Traditional cost management is only passive planning, accounting, and accounting. Under the conditions of market economy, cost management can not be limited to the production process of products, but should extend the vision to the market demand analysis of products, the development of related technologies and the design of products; extending backwards to the use and maintenance of customers. And disposal. According to the requirements of the whole process of cost management, it will involve the information source cost, technical cost, logistics cost, production cost, inventory cost, sales cost, and cost to the customer, such as maintenance cost and disposal cost. All of these cost elements should be managed using rigorous and meticulous scientific methods. With the diversification of business operations and the complexity of business management, the requirements for accuracy and timeliness of information processing are becoming higher and higher. Therefore, the superiority of using computers for cost management is also obvious.
(2) It is necessary to do a good job in several aspects of enterprise cost management. We must do a good job of cost forecasting, decision-making, and cost planning beforehand; we must do a good job in cost control and accounting; we must do a good job in cost assessment and analysis.
(3) Do a good job in reducing the cost of products, such as the implementation of a price comparison system for the procurement of major raw materials and materials to reduce procurement costs. (4) Improve the level of capital operation. First, we must open source and reduce expenditures, increase revenues and reduce expenditures; secondly, we must implement tracking and management of funds, strengthen fund scheduling and use, and make special funds to prevent funds from being misappropriated; third, we must increase the collection of accounts receivable and reduce the proportion of accounts payable. Accelerate the withdrawal of payment; reduce the proportion of inventory and strengthen inventory management. Through the above measures to reduce capital occupation, optimize the capital structure, rationally allocate funds, accelerate capital turnover, and reduce financing costs.
V. Strengthening the concept of strategic cost
The purpose of modern cost management should be to obtain as much use value as possible with as little cost as possible, so as to provide the best possible basis for making profits, thereby increasing cost-effectiveness. In the case of a drastic economic environment and fierce market competition, the acquisition of cost advantages is crucial to the survival of an enterprise. We should pay close attention to the movements of the entire market and competitors to identify problems, adjust and change our own strategies and tactics. Starting from strengthening strategic cost management, enterprises should increase investment in scientific and technological content during product development and design, and avoid unnecessary production links by reorganizing production processes, manage product life cycle costs, and achieve cost reduction. The purpose of cost control.
6. Integrate and improve work processes, reduce unnecessary division of labor and operations that cannot add value (or actions)
After analyzing their own competitive advantages and determining their goals and tasks, enterprises should reasonably organize production factors, revoke unrelated links, reduce unnecessary levels, and reduce unnecessary stagnation while achieving necessary links. To ensure the smooth operation and effectiveness of the necessary links, completely eliminate the waste of resources on the site (including production workshops and office operations). Seven, reduce inventory and resource acquisition costs
The implementation of the largest management skills is in line with the companys own "lean production" system, establish a demand-pull platform, strengthen the coordination of production and sales, and increase the flow rate of the enterprise value chain.
8. Take effective measures to ensure the validity of cost information
Government departments must first emphasize the need to set a good cost range, master the industry standard costing skills, and strengthen law enforcement. The key to the formulation of the system and the strengthening of information circulation lies in the promotion, implementation and implementation. Only when there is law, the law must be investigated, and the law enforcement must be strict, can we reverse the bad atmosphere of the society and promote the righteousness. Secondly, it is necessary to reform the accounting personnel management system and implement an independent system of accounting and internal auditing. In addition, it is necessary to improve the professional ethics of business managers, accountants and internal auditors, enhance the awareness of legal system and moral self-discipline, and maintain professional conscience to ensure the authenticity of accounting information.
Any kind of cost management method is not static, it will change with the development of society and the environment. Therefore, it is necessary to study the cost management method with the concept of development and continuously innovate the cost management method to meet the needs of the development of the situation.
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