CNC Machining and CNC Machine Tools, Manufacturing Processes and Procedures

Unable to control the cost of lost profits

Reading: “Revenue-cost = profit”, an enterprise, in order to pursue profit, there are two ways: one is to increase revenue, the other is to reduce costs. Marketing is the fortress of the company, and the cost is a large rear part of the company. The cost is reduced by 10% and the profit is doubled. The cost reduction is the reduction of risk. Recently, various departments of the company have been doing cost control and have been very effective. assuring the quality

Summarize the following seven wastes in the production and operation link: waiting waste, waste of transportation, waste of unqualified products, waste of actions, waste of inventory, waste of excessive production, and waste of people. One of the worst wastes is the waste of excessive inventory. He will produce the following problems: occupying space in the warehouse space; occupying funds; additional manpower inventory and management; causing corrosion, aging, and failure, and masking many problems in management.

To cut costs and eliminate waste, we must look at the knife and kill the cost as a demon. By summing up, we should do the following:
First, cut the budget

First, we need to set up a budget system. The budget must have legal force. Under heavy pressure, there must be a courageous man. After the budget is forced out, profits will follow. assuring the quality

Second, cut institutions

To cut the organization, it is necessary to quickly cut the knife, not to stand alone in a high place, to do a full body weight-loss exercise, and to lose weight is a great revolution – change in the consciousness of the entire staff, to cooperate with people with strong abilities, and to be giants do not dwarf. Through the “I can create more profits, I can do for customers” discussion, the introduction of “profit-oriented, customer-oriented” concept; in accordance with customer-oriented, profit-oriented principles, through learning and research, reorganization of the company’s three major processes , that is, product development process, sales process, order delivery process; according to the new business process to design a new benefit mechanism.

Third, cut people

One book says that only one of the three employees creates value, so each employee must have a machete and everyone has a knife: The goal must be clear for any employee; there must be quantifiable figures; A challenging spirit; reasonable, cannot be separated from reality. Cut people, to be 10-1> 10.

Fourth, cut inventory

Set the minimum inventory standard, to market without the factory, to achieve zero inventory. Reduce the details of the company’s inventory: directly to the production line; pick up the goods in circulation; maintain communication with suppliers; establish good relationships with suppliers to ensure priority delivery; transfer inventory. assuring the quality

Fifth, cut purchase costs

Sharpen the knife, the sharper the better, focus on the three core —– core business, core products, core customers. Through bidding to determine the supplier, the supplier’s choice is the central task – credit conditions, quality assurance, price, cost, time, service conditions, so that our buyers and suppliers remain in opposition, at the same time, the supplier is also ours Win-win business. assuring the quality

Six, cut poor quality customers

He once heard the phrase “Infinitely satisfied customers will go bankrupt”, poor quality customers will be resolutely blocked, and customers who owe money will not be merciless. Otherwise, the receivables will become careless. However, the service determines the success or failure. For trustworthy customers, we must pay attention to service quality and product quality.

Seven, cut daily expenses

Carefully observed that waste is everywhere, as a comprehensive management department, we will cut down the daily expenses from the following: cut phone bills, cut down the fare, cut office equipment costs, cut unnecessary travel expenses, chopping hospitality. assuring the quality

Eight, cut the meeting

In fact, the conference is the enemy of time and cost. Often, many conferences are tortured by documents. We should organize the conference into limited-time speeches, manage our own time, and regard each day as the last day of our lives. Efficiency, the meeting focused on solving problems rather than discussing issues.

Killing the cost as a demon kills, instilling the importance of reducing costs, engaging all employees, linking cost reductions to salaries, and the benefits of reducing costs are naturally all of us. assuring the quality

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