Introduction: SMEs will encounter bottlenecks in their development at certain times. Operational costs have been rising, but it is difficult to find the “location” of costs. We call this the “implicit form”. This article summarizes the existence of various “hidden costs” of the company, which can be compared to self-test. multi axis machining
1, meeting costs
Business operations are nothing more than a race against time. The conference is a collective activity for companies to solve problems and issue directives, but it is also a high-cost business activity. Many corporate executives do not have the skills to hold meetings. There are six non-existent phenomena: “no preparations before the meeting, no topics at the meeting, no implementation after the meeting, no need for participation, no time for control, and no speech”.
2, procurement costs
Once there was a company when it was doing a new project, the daily operating cost of the project team was 80,000 yuan. However, on the eve of product launch, the procurement department spent a week in order to purchase more than 100,000 yuan worth of packaging. The reason was Find low-cost suppliers to save on procurement costs. The entire marketing team, therefore, waited more than a week to sign the contract with the customer. multi axis machining
3, communication costs
In most companies, you will find that in the process of communication between colleagues, there will be serious distortions, or words inadvertently, or unanswered questions, or hundreds of people… This phenomenon, said that small so that many processes Become an invalid process or lose a lot of important opportunities. If you say something big, it may cause hidden trouble for the company. This is a typical cost increase due to poor communication.
4, overtime cost
Many employers always think that it is a professional phenomenon that employees “overtime work” after work. As everyone knows, this may imply a very high cost. multi axis machining
The reason for overtime is not necessarily because the task is too heavy. It may be caused by the inefficiency of employees. If the objective task is really heavy, then the company should replenish new personnel and positions in time to be truly development and progress.
Working overtime consumes more staff energy and physical strength, seriously overdrafts the health of employees. In the long run, some important employees will not be able to exert their effectiveness for a long time, and there will be hidden dangers for the company. For example, some mechanical operation staffs work overtime because they work overtime. It leads to mental disorders and accidents, and companies have to pay a heavy price for this. multi axis machining
5, talent flow costs
The loss of employees, especially older employees, will undoubtedly bring the company several times more than its income. After many small businesses have been in business for many years, you have discovered that they have always been such a small team. Apart from the boss, no one employee has left the company since its establishment. This may be an important reason why it cannot develop.
6, post misplaced costs
In human resources management, there is a famous saying “put the right person in the right place.” Unfortunately, there are not many companies that can really do this. multi axis machining
7, process costs
There are too many chaoses in the enterprise because of processes. This is a common problem in enterprise management. The process of slow-moving enterprises must be confusing or unreasonable. They bear a high cost for this, but they have always ignored it.
8, stagnant resource costs
Stagnant resources can be said to be the most widespread “implicit” in the enterprise, such as idle equipment, backlogs of inventory, low-utilization job occupations, idle funds, and shelved businesses. Although they will not necessarily continue to consume the input of enterprises, they are part of the assets of enterprises and companies will bear the implicit cost of such interest. multi axis machining
9, corporate culture costs
Saying that corporate culture can become a cost, perhaps many people disagree, but it is. We will find that the employees of some enterprises are apathetic and extremely inefficient in doing things. No matter how excellent the employees are, as long as they enter, they will soon leave or they will become so. We cannot but say that this is an “environmental” issue. And this “environment” is exactly the corporate culture of this company.
10. Credit costs
We have found that many companies are accustomed to default on payment from suppliers, are accustomed to defaulting on employee salaries, are accustomed to deducting others, are accustomed to defaulting on bank loans, etc., and believe that this can ease the pressure on corporate liquidity. However, in the long run, this will become a serious hidden cost of business operations. multi axis machining
11, risk costs
It is every entrepreneur’s dream to push the company into the fast lane. However, the risk factor also increases simultaneously. In particular, large and medium-sized enterprises, although they have developed rapidly and are rich in income, they will be catastrophic in the event of a crisis. multi axis machining
12, entrepreneur costs
There is a good sentence, one bear, and one bear. Entrepreneurs are like the heads of an army. They themselves are the employees who pay the highest costs. The bosses of many private enterprises have turned themselves into the “emperors” of the company. All of them have the final say, and all employees have become executive machines. However, the lack of entrepreneurial personal factors will add a heavy cost burden to the company.
It can be seen from the above that companies often bear many burdens in their operations and management. The discovery and effective reduction of these hidden costs may be a powerful measure of the progress of the company. multi axis machining