In manufacturing enterprises, the reduction of product costs is mainly analyzed from two aspects: material cost and expense cost. The focus is on how to reduce material costs as follows:
In processing and manufacturing industrial enterprises , material costs account for more than 60% of the cost of most products. In industries such as mechanical processing, deep processing of agricultural products, hardware manufacturing, food manufacturing, etc., material costs account for more than 90% of the overall product cost. Reducing material consumption costs is of great significance to the company's long-term development. Extremely important significance:
In the production process, an enterprise must first define the "cost center" of the production workshop (production process) according to the production process route and product structure level, and then further clarify cost control on this basis. Points, control links, and control elements are used to formulate material consumption control standards based on process design or industry standards, and existing experience values. A "formula table" can be used to express the material consumption requirements of product output.
Theoretically, each production workshop (production process) receives materials according to the standards (process design) of the technical department, that is, based on the "recipe table" calculation. However, in the actual operation process, the standard dosage often occurs. There are many reasons for this. For example: one reason is that the formulation of the standard dosage is not in line with reality and is not standard. The workshop's collection of materials according to the standard dosage often cannot meet the normal production. It is necessary to re-pick materials multiple times or to return too much material. In this case, the production workshop will find it troublesome and will no longer pick materials according to the standard amount; another reason is that the materials used by the workshop do not follow the production plan. To obtain it, or even if it is obtained as planned, in the actual use process, the common materials in each production workshop will be misappropriated from each other, and if they are not enough, they will go to the warehouse to obtain them. In fact, the workshop may still have these materials. This situation will cause inaccuracies in the accounts. Clearly, the cost is included in the error; the third situation is direct waste, such as loss or scrap, or the irresponsible operation of the workshop operator and the random use of materials.
In response to the above situation, the first step is to establish and improve the process and system for material requisition in the workshop, strictly implement it, and standardize the behavior of retrieving and using materials; secondly, it is necessary to establish and gradually improve the control of production costs. Focus on the analysis and evaluation system of economic indicators related to material consumption, and further establish an abnormal analysis and processing mechanism to clarify how to deal with excessive material consumption, clarify responsibilities, and establish an effective assessment and reward mechanism on this basis; in addition, in today's era, , it is recommended that enterprises use computer software systems (such as ERP systems) to assist in production management. With the help of ERP management tools, calculations that cannot be completed immediately under manual conditions can be easily realized, and the quantity of materials and materials can be effectively controlled. Standardize the use of materials by workshop operators and further restrict random behavior during material consumption. At the same time, when materials are too time-consuming, problems can be discovered immediately, and relevant responsible departments can be asked to review the problem and solve it from the source.
The cost control of manufacturing enterprises in the material use stage mainly refers to reducing waste. At the same time, in each material consumption cost control link, the standard consumption set in the "recipe table" is not static. During the actual production process operation, material usage can be reduced as much as possible while ensuring that the workshop production capacity is functioning normally and product quality is not affected.
To reduce product costs, we should mainly strengthen the assessment of corporate expense budgets and final accounts. We can also formulate expense standards as a basis for assessment and comparison. The responsibility lies with everyone!