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How to control costs more effectively
Lead: To control costs, we must grasp the dialectical relationship between short-term interests and long-term interests. Many times, cost reduction is a temporary need, similar to general cleaning, mainly focusing on current interests. Controlling cost is a basic management method and a consideration of long-term interests.

How to control costs more effectively? Enterprise cost elements and control forms.

Enterprise costs are divided into fixed costs and variable costs.

1, fixed cost:

Refers to the total cost that can remain unchanged in a certain period and within a certain business scope without being affected by the increase or decrease of business volume. Such as depreciation of fixed assets such as factory buildings, machinery and equipment, financing interest, salary of managers, social security expenses of employees, new product development expenses, advertising expenses, employee training expenses, etc. Some fixed costs are rigid and some are flexible. Except for rigid costs, most elastic costs have room for compression and optimization.

2. Variable cost:

Refers to the cost that varies linearly with the change of business volume within the relevant range. In a certain period of time, the variable cost changes directly with the increase or decrease of business volume, and the unit product consumption remains unchanged. Such as direct workers' wages, raw materials and accessories (spare parts), utilities and other expenses, living welfare expenses, logistics expenses, risk losses, etc. Among the variable costs, there are core costs and marginal costs. In principle, all variable costs have room for compression and optimization.

Second, we must adhere to the principle of cost control.

Cost control is a systematic project, which is the basis of healthy operation of enterprises. In order to effectively control costs, we should adhere to the following principles:

1, overall planning, planning first.

To do anything, we must have a plan and a process, and proceed from the whole and the overall situation in order to win by surprise. Explicit costs are easy to see, while implicit costs are difficult to measure. The waste of unbalanced production caused by poor planning is obviously much bigger than a piece of paper; It is also difficult for management to pay attention to the pressure on cost caused by the backlog of semi-finished products or unreasonable inventory. The overall consideration is to be flexible, loose and orderly. Some enterprises lack the overall planning of cost control, so that there are many hills and divisions. There is no overall concept, only paying attention to details. Even if the cost control of each division is in place, due to poor overall coordination, it is just a matter of picking sesame seeds and throwing watermelons, and cost control can only become a mere formality.

2, internal control, efficiency first.

The competitiveness of enterprises is reflected in market taste, cost, quality and so on. Usually called: external competition for the market, internal control of costs. Because the external initiative is not in our own hands, we must work hard to do what we have the initiative, and the reverse cost of production enterprises is this idea. The purpose of cost control is to enhance competitiveness and better improve efficiency and quality. If quality and efficiency are sacrificed because of cost control and the overall competitiveness of enterprises is hurt, then this cost control is invalid and failed.

3, the first animal is big, from easy to difficult.

In actual management, the mistake we often make is to be eager for success and always think about it? Finish the work in World War I? And lead to staying? Good idea? Stage. It is impossible to do things with a person's blood. There are many examples of good people doing bad things. Details determine success or failure. It is commendable to grasp the important and difficult things as soon as you get started, but it is difficult to find a breakthrough. Cost control should start from the details, small things, daily life, bit by bit, save a piece of paper. Custom is a second nature.

4, people-oriented, rooted in the present.

People are both the biggest resource and the biggest cost. To control the cost, we need a calm analysis, scientifically determine the manpower required for the current production scale, and ensure that the personnel are suitable, not overstaffed or overloaded. At the critical moment, leaders should take the lead and set an example. The site is a concentration camp where human, machine, material, law, environment and other production factors are fermented, and it is a training ground for the allocation of human resources and material resources. Production capacity, quality, cost, morale, safety and delivery are all closely related to the site. The quality of on-site management represents the real management level of enterprises to a certain extent.

How to control labor cost more effectively: implement the double control method of combining responsibility cost with cost saving, increase labor cost by cost saving, deduct labor cost by cost overrun, and implement cost veto on the premise of ensuring project quality. Establish an incentive mechanism of getting more for more work, getting less for less work, and getting nothing for nothing, so as to stimulate employees to learn new processes, technologies and methods, enhance their labor skills, and improve their enthusiasm and consciousness in labor productivity. Through the implementation of cost veto, the responsibility cost goal can be achieved and the income of employees can be increased.

Material cost control: first, deeply understand the market situation and grasp the market dynamics; Second, the bulk materials with large consumption and single specifications are subject to centralized supply by bidding; Third, the procurement of sand, stone and other materials has price restrictions, which are controlled by the project department and the construction team; Fourth, make full use of local resources; Fifth, implement quota allocation and supporting acquisition system; Sixth, strengthen the management of subcontracted engineering materials; Seventh, strengthen material accounting and make regular inventory.

Control of machinery use fee:

① Strictly control the newly purchased equipment;

(2) Maintain the existing equipment to improve the attendance rate, intact rate and utilization rate of the equipment;

(3) Implement single-machine and single-vehicle accounting;

(4) Technical evaluation and monitoring of major and medium repair equipment, and control of repair costs;

⑤ Check depreciation reserves regularly.

Indirect cost control: set up a lean and efficient project department, strictly allocate personnel, posts and personnel, and reduce the cost of management and service personnel; Office expenses, communication expenses, travel expenses, etc. It should be controlled by indicators, and expenses that cannot be controlled by indicators should be strictly examined and approved.

Strengthen the management of sub-teams and sub-projects

Subteam

Select and make good use of subcontractors and give full play to their roles. Come at the drop of a hat, stay away, be flexible? Its advantage is an effective way to improve economic benefits and promote enterprise development. Construction enterprises should strictly follow? Pre-qualification, assessment, democratic decision-making, and superior approval? The principle of choice? Three certificates? Complete (qualification certificate, business license, safety approval certificate), with performance, ability and funds.

Subcontracting project

Must strictly abide by the use of subcontracting teams? Sign a contract before construction? Principle, and collect the performance bond according to a certain proportion of the contract price. Pricing shall be carried out in strict accordance with the contract and the progress of the project, and funds shall be allocated by stages according to the pricing and the contract. Overpricing is strictly prohibited. The management of subcontracting teams by construction enterprises should be treated equally with internal teams, and it is strictly forbidden to use subcontracting as an escrow to prevent quality accidents.

Improve the valuation method, and timely carry out inspection and valuation, final accounts of the project and internal audit.

The project department should establish and improve the management methods of work inspection and valuation, and plug the loopholes of work inspection and valuation. The pricing of subcontracting teams must implement the system of signing and approving technology, quality inspection, planning, materials and project managers to prevent unqualified quality, miscalculation and over-pricing.

Strengthen scientific and technological research

At present, the space for construction enterprises to rely on internal resources to reduce consumption and increase efficiency is getting smaller and smaller. Only by making full use of science and technology, accelerating the transformation of scientific and technological achievements, attracting scientific and technological talents, and constantly carrying out technological innovation, can the sustained growth of economic benefits be realized. By strengthening contact with scientific research institutes, enjoying scientific and technological resources, scientifically formulating construction plans, optimizing construction technology, rationally allocating production factors, reducing engineering costs and enhancing market competitiveness.