How to best enterprise control cost

[abstract] in the current global financial crisis background, each enterprise are focusing on cost control, really realize effective cost control, essentially improve the management of the enterprise status, make enterprise through.

[key words] control cost scientific mechanism

More excellent international enterprise group, President of the law is concluded: "enterprise profitability improve the secret of cost control, from product development, design to production sales this a series of process it strictly control, ensure quality products at the same time, put down the cost of products, which can make the enterprise in the fierce competition in the market to keep good profit." So, some enterprise to do scientific control costs, the first is to be able to correctly understand the meaning of "cost", and can effectively do control costs.

A, control the cost is to put the money moderation

In fact, control cost is a door the art of spending money, not save art. How to spend every penny of proper, will enterprise every resource use places where they are needed most, this is China enterprise in new business times common problems.

The traditional cost management in enterprise is based on saving, from lower costs and one-sided to avoid the occurrence of certain expenses of emphasis on saving and save. And international companies argue that, in order to save the cost control the fundamental idea of the enterprise is just the type of soil rich enterprise, besides them in raw material and exploit the workers on the outside to sell at a discount greatly, no guorenzhichu. So, we need to learn modern enterprise should control strategy and method of cost. Enterprise to have a long-term benefits, they can only from the strategic height to implement the control costs. In other words, not to cut costs, but to increase productivity, shorten the production cycle, increase production and ensure the quality of products.

Simply cut costs, reduce the cost as the only goal, and can't get the approval of a farsighted entrepreneurs. Simply pursuit to cut costs, general and simple approach will consider reducing the price of raw materials purchase or class; A single product or reduce the material inputs (steal materials); Or consider reducing the wages of process, so as to achieve the purpose of cost cutting. In fact it is very dangerous, will lead to the quality of products of the drop, enterprise labor resources loss, or even lose their already have of the market.

Second, cost control need to build a scientific mechanism

To do reasonable control cost, how to do? We look at multinational enterprise is how to establish control cost system:

The first step: strategic objectives guidance control cost objectives

The correct direction is half the battle, cost control. Control the cost for the purpose of continuous reduce costs, make more profit. So, set goals cost should consider above all of the enterprise profit objectives, and at the same time, want to consider competitive sales price. Due to form in the whole production process cost, expenses occurred in every link, every thing, each activity, therefore, to target cost layers of decomposition to each department and even individuals.

1. The enterprise project analysis

Each department to marketing goal oriented, annual work of a project, to realize the target list had to do all kinds of projects, as well as the project for task decomposition, again to time, cost, and each link performance analysis, comparative costs and benefits. Such as the Marketing Department in order to achieve established goals next year, need to finish much marketing and promotion project, project one by one to break down into task, to take the cost of each task on the reasonable budget, and at the same time to produce earnings estimate.

2. Conduct industry value chain analysis

Industry value chain: is the enterprise exists in a one point of the industry value chain, including on the downstream channel, and the junction of enterprise, if the supplier is the packing of the products can reduce the enterprise handling costs, improve the value of the vertical integration to also can make the enterprise and its on the downstream and channel enterprise jointly, reduce the cost, improve the whole competitive advantage.

3. Rival the value chain analysis

Rival value chain and the enterprise value chain in the industry value chain in parallel position, through the analysis of the value chain to competitors, can work out the cost of the competitors. Then, the enterprise and compared with competitors out the task in the differences between the activities, enhances strong points and avoid weaknesses, strive for the cost advantage.

The second step: control cost four steps executive method

1. Reduce target specific projects and tasks

In the enterprise goals clear, each project and the mission is to achieve the goals of the service. A project analysis, can the goal of the project and the task is not clear cut off.

2. Clearly the cost of each department task

A "full cost management" method. Particular way is to work out the cost of the ceiling. And then carry out various departments decomposition horizontal, vertical decomposition implement to group and individual, and link up with rewards and punishments, make the responsibility, right and interest, unity, and eventually the whole enterprise in formed in the sprawling target cost management system.

3. Cost accounting, fine management

No digital standard quantification, he never talked about thrift and control. With control cost plans to come out is a digital list, including controllable cost (personnel, water and electricity, packaging, consumables, etc) and the uncontrolled charges (fixed assets depreciation, raw material purchase, interest, cost of sales, etc.). Monthly, quarterly financial summary by the hands of backwardness to managers, overspending and abnormal data use red special identification. At the end of the month in the summary of the meeting, the relevant departments of the need to explain the overspend part. In order to let employees develop cost consciousness, best the process and control the cost of SOP manual ". Manual from raw materials, electricity, water, printing supplies, labor insurance supplies, telephone, office equipment, equipment and other comsumption products, the paper puts forward the method of cost control. Of course, effective incentive is also a good way to control costs, so, control the cost of reward has become part of the employee wages.

4. Cost management "advance" and "extensions" "early" is increasing technology investment, control the purchase cost; "Stretch" is to the upstream and downstream together. Today's market competition, it is the strength of the competition, talent competition, the product and the service quality competition, is also cost competition. In a sense, cost decided to a the competition ability of the enterprise. To ensure product quality in the premise, reduce the cost of enterprise gradually expand the market share of the important way, is to improve the enterprise economic benefit foundation. Enterprise managers have to change the traditional narrow cost concept, combined with the practical situation of the enterprises, and make full use of modern advanced control cost method to strengthen the competitiveness of the enterprises, and to meet the challenges of the parties.