Concentrate to reduce costs and improve efficiency, forge full chain toughness

The current domestic and international market environment is unpredictable, and industry competition is becoming increasingly fierce. For us, how to navigate steadily in this turbulent sea of commerce has become a core topic of deep contemplation. In view of this, the company officially established the Cost Reduction and Efficiency Improvement Committee in March this year, establishing "cost reduction" and "efficiency improvement" as long-term and critical tasks. After all, only by effectively reducing costs and improving efficiency can enterprises enhance their competitiveness in the market, and thus gain space for survival and development in this ever-changing market.

Multi terminal collaborative efforts to promote product cost reduction and efficiency improvement

Products are undoubtedly the core elements of manufacturing enterprises. Only by reducing product costs can we have market competitiveness and win orders, and orders are the source of vitality for enterprises to survive. To achieve the goal of reducing product costs, it is necessary to coordinate multiple aspects such as marketing, sales, design, research and development, process, planning, procurement, production, quality, warehousing, logistics, etc., think together, work together, and gather strong forces.

The design and R&D department should actively engage in cutting-edge innovation and use advanced concepts and technologies to develop new products. In terms of process optimization, the lean production concept is introduced to deeply analyze the production process, identify and eliminate unnecessary operational steps and waste, and reduce product process costs.

The order delivery department should build an efficient information tracking platform, use IT tools to track production plans in real time, ensure seamless integration of orders, closely monitor procurement and production progress information, and minimize delivery time through resource coordination.

The quality department should establish a full process quality control system and use big data analysis to comprehensively and comprehensively control and supervise product quality throughout the entire process. Through early warning, timely detection and resolution of quality hazards, reducing quality problems, and eliminating quality accidents.

The finance department also plays a key role in reducing product costs. Using refined cost methods to calculate the costs of each link from raw material procurement, production and processing to finished product delivery, providing accurate data support for cost reduction measures in other departments. In terms of budgeting, reasonable standard costs should be established, and budget execution should be strictly monitored through real-time monitoring to promptly detect and correct cost deviations. In addition, the finance department should actively participate in product pricing decisions, use scientific methods, comprehensively consider cost and market factors, and ensure that product pricing can cover costs and have market competitiveness.

However, not all efforts can yield ideal results. Taking the vacuum formed door panel products of the Camio Wings Theater as an example, their cost has always been high and they have no market competitiveness. In addition, there were loopholes in quality control last year, which led to huge claims from customers. Currently, the company is still struggling to negotiate with customers. Helpless, the company had to reluctantly cut ties and revoke the door panel workshop. This measure forced many skilled workers to switch careers and relearn other skills, ultimately resulting in a disadvantageous situation where both the company and employees lost.

Strengthen supply chain management, promote cost reduction and efficiency improvement in procurement and logistics

Firstly, strengthen supplier management and actively build long-term stable cooperative relationships with high-quality suppliers through deep integration. By establishing strategic partnership alliances, sharing market information with suppliers, collaborating on research and development innovation, we strive for more favorable procurement prices, more stable supply guarantees, and higher quality after-sales services. At the same time, strengthen the application of supplier evaluation results, dynamically adjust supply shares based on actual situations, and ensure that the supply chain is both stable, reliable, and dynamic.

The IT department can play an important role in this process. With the help of big data analysis technology, we deeply mine, organize, and analyze various types of data from suppliers, including delivery punctuality, product quality data, price fluctuations, etc. We use data visualization tools to provide intuitive and accurate data basis for the procurement department to screen high-quality suppliers. Develop and improve a supplier management system, utilize IT tools to achieve real-time information sharing and interaction with suppliers, improve communication efficiency, reduce information costs in the procurement process, and enhance the overall collaborative efficiency of the supply chain.

Secondly, strengthening inventory management is crucial. Using scientific and reasonable inventory management methods such as ABC classification and economic order quantity model to accurately control inventory levels. By establishing a safety stock warning system, inventory backlog can be avoided to reduce capital occupation and inventory management costs, while utilizing supply chain collaboration technology to ensure smooth production and sales.

In addition, it is necessary to vigorously optimize logistics distribution methods, adopt innovative models such as joint distribution and centralized distribution, and use path optimization algorithms, vehicle scheduling systems, and other means to reduce transportation costs and improve logistics efficiency.

Promote lean management to help reduce production costs and improve efficiency

To promote lean production management, the production department should comprehensively optimize the production process, use value stream analysis and other methods to improve raw material utilization, eliminate material waste, and reduce the production of defective products; Strengthen the maintenance and upkeep of equipment, utilize equipment preventive maintenance systems, extend equipment lifespan, and reduce equipment renewal costs. Through in-depth analysis of equipment productivity, the redundancy problems in the production process are inversely deduced using the industrial Internet platform, and timely tracking and improvement are made to effectively improve production efficiency.

The equipment management department bears significant responsibility in this process. In addition to daily equipment maintenance, it is necessary to develop a scientific equipment update plan, use equipment lifecycle cost analysis methods, combine production needs and equipment performance conditions, and arrange equipment replacement time reasonably to avoid cost waste caused by premature or late equipment updates. Introducing advanced equipment monitoring technology, real-time monitoring of equipment operation status, predicting equipment failures in advance, reducing production downtime caused by equipment failures, improving equipment operation efficiency, and reducing equipment maintenance and production interruption costs.

To achieve cost reduction in production, it is also necessary to attach great importance to energy-saving equipment renovation. Energy consumption accounts for an important proportion of production costs. Energy saving equipment can be retrofitted by adopting technologies such as variable frequency speed regulation and waste heat recovery to reduce energy consumption and effectively reduce production costs.

Optimize positions and processes to achieve cost reduction and efficiency improvement in management

People are the fundamental element of enterprise operation, and optimizing business processes is the key breakthrough to improve efficiency. Firstly, each process owner needs to conduct a comprehensive review and in-depth analysis of the existing processes, using methods such as process reengineering and Six Sigma to identify the cumbersome, repetitive, and inefficient links. For example, in the approval process, carefully examine whether there are too many levels and excessively long waiting times. In the process of process optimization, it is possible to adopt a parallel approach without serial connection, while establishing an efficient information sharing mechanism to reduce communication costs.

The human resources department plays a leading role in process optimization and job matching. Through job analysis and evaluation, the job value assessment model is used to clarify job responsibilities, skill requirements, and workload, providing suggestions from a human perspective for process optimization. In the personnel recruitment and configuration process, based on optimized processes and job requirements, talent assessment tools are used to accurately recruit suitable talents, avoiding personnel redundancy or mismatched abilities. Simultaneously design a targeted training and development system, utilizing online learning platforms, simulated training, and other methods to enhance employee skills, enabling them to better adapt to job changes and process optimization requirements, improve overall work efficiency, and reduce labor costs.

Secondly, efforts should be made to optimize the matching of personnel and positions, and improve personnel efficiency from multiple dimensions. The chairman clearly stated at this year's Spring Festival gathering that in the future, we will continue to optimize the organization, streamline personnel allocation, eliminate positions with low value creation and passive personnel, and make every effort to build an efficient and capable workforce. Yingpu Si compressed the management hierarchy and eliminated the middle layer; The Camio Wings merged the outsourcing department and the storage and transportation department. These measures not only reduce personnel costs, but also significantly improve operational efficiency. Only by continuously improving their own value can employees create greater benefits for the company and thus stabilize their positions.

Furthermore, to achieve cost reduction through management, it is necessary to strengthen accounts receivable control and reduce overdue accounts. For accounts that are overdue for a long time, it is necessary to coordinate legal follow-up and handle them in a timely manner, and effectively reduce financial risks through legal means, debt restructuring, and other methods.

Everyone values participation and forges full chain resilience

Cost reduction and efficiency improvement work cannot be achieved without teamwork, and the power of the team needs to be fully utilized. The severity of the market must be conveyed to every employee, not just limited to the sales side, and everyone must have a strong sense of urgency. After all, if a company has no orders, everything is zero! In order to survive and develop, it is imperative to reduce costs and improve efficiency. If the cost reduction and efficiency improvement work is not implemented properly, the company will lose its competitiveness and ultimately be eliminated by the market. All employees should deeply recognize the importance of "cost reduction" and "efficiency improvement" work, and make every effort to forge the resilience of the entire industry chain.

As the support and guarantee department for the daily operation of enterprises, the administrative department can also contribute to cost reduction and efficiency improvement. In terms of infrastructure maintenance, procurement costs are reduced through centralized procurement and negotiations with suppliers to obtain preferential prices; Optimize the layout of office space and improve its utilization through planning; Standardize the use and maintenance system of office equipment, extend the service life of equipment, and reduce the cost of equipment updates. At the same time, the administrative department should actively coordinate with various departments to use project management tools to ensure smooth information flow, reduce inefficiencies caused by poor communication and coordination, and improve overall operational efficiency.

In summary, only by reducing costs and improving efficiency can we stand firm in market competition and achieve survival and development. All employees should start from small things around them, actively participate in cost reduction actions, speak and act, improve work efficiency, and help honsoar to stand at the forefront of market competition and achieve steady and far-reaching results.