Editor's note: In recent years the development of market economy, rising raw material prices, costs have been continuously improved the survival and development of mould are serious challenges, cost control, business management in a mould core element. How to achieve long-term competitive advantage of cost control, to maximize the interests of enterprises, is the goal of each mould companies.
Abstract: The quality of cost control is directly related to mould the survival and development, strive to do so cost control is an important aspect of business management. In this paper, the perspective of experts from the cost control point of view of several concept, that the traditional method of cost reduction from R & D cost control, cost control, purchasing, production cost control, quality cost control, marketing, cost control, cost control, logistics, human resources cost control systems to cost control mould companies described the basic method and means, and through analysis of existing cost control mould barriers to enterprise, summed up the mould and the direction of corporate cost-control guidelines.
Key words: die Enterprise Financial Management Enterprise Management Cost Management Cost control management
First, the premise of the concept of cost control
The so-called cost control, according to a certain period of enterprise cost management objectives established in advance by the principal cost control in its terms of reference, occurring in the production cost and cost-control process before, on a variety of factors and conditions affect the cost of taking a series of prevention and regulatory measures to ensure the cost-management behavior to achieve management objectives.
1. Cost Category
The cost of property can be divided into the following categories:
①. Fixed / variable costs
Fixed costs: a cost does not vary with the amount of business activity (production or sales) to change. Housing rent, insurance, advertising, management salaries, the straight-line method of depreciation of fixed assets, fixed costs are all fees.
Variable costs: the variable cost of operating activities are changes with the change. Direct materials, direct labor, variable overhead, sales tax, and so on are variable costs. The mould companies, the need to increase the yield of lower unit fixed costs, such as reduced material consumption and mould parts procurement purchase price in order to improve competitiveness.
②. Direct / indirect costs
Direct costs: costs can be traced also known, can be directly attributed to the department or a specific product costs.
Indirect costs: costs, also known as non-retroactivity, with departments or product related, but can not or will not easily directly attributable to the various departments or products, shall be credited to the appropriate apportionment of the cost of each department or product.
③. Exposed / content costs
Exposed cost: the actual expenditure for the purchase of assets. Such as the purchase of raw materials, machinery, plant and so on.
Content cost: using its own assets, without consideration of actual expenditures, such as using their own land and housing.
④. Learning costs
Learning costs: When workers are engaged in the same work because of repeated, and become familiar with the work, will make it more efficient and less time available to complete the same work, and reduce errors. Because of the work processes, tools and working methods of using the familiar, making the waste of raw materials and reduce the possibility of duplication of work, thereby reducing the amount of skilled workers employed, allowing the unit cost reduction in the expected case. When employees become more familiar with their work, not only can reduce labor costs, and changes in manufacturing and labor-related costs will be reduced. This cost reduction is the result of study.
⑤. Production costs / non-production costs
Cost of production: the production process for the manufacture of products, the costs incurred cost, including direct materials, direct labor and manufacturing costs.
Non-production costs: the cost of non-manufacturing operations, such as marketing expenses, administrative costs and financial costs.
Product Cost: production of a particular product is directly related with the product flow and the flow of it, if a particular product sold, the cost to become cost of goods sold and sales revenue ratio; If a particular product is not sold, its costs will be carried forward as inventory period, can the resulting inventory costs.
Period costs (expenses): over time the costs incurred in a given period, and into current profit or loss, is not carried forward on the (non-inventory costs), and product flow independent entity, not directly attributable to specific products, and attribution occurred in the production and operation costs for the duration (ie to achieve current income and costs incurred cost)
Development costs: seek, visit, selected suppliers, expenses, and shall include the cost of order processing.
Purchase Price: negotiations with suppliers after the purchase cost.
Transportation costs: the procurement of foreign suppliers to FOB offer to buy business to pay freight, and even insurance premiums.
Inspection costs: when the feed quality control inspection staff salaries paid, inspection instruments or equipment depreciation costs.
Tryout cost: the cost of the mould assembly and tryout costs.
Storage cost: includes warehouse rental, warehouse staff salaries, utilities, storage equipment (pallets, forklifts, automatic handling, etc.) of the depreciation charges and insurance.
Operating costs: fuel used in machinery and equipment or utilities, the operation of the working hours, staff training.
Maintenance costs: mould damage, troubleshooting, and maintenance labor and parts cost.
Disposal costs: the old machine or waste abandonment costs and environmental costs of removal and transportation.
2. The principles of cost control
①. Fully involved in the principle - the full cost control, full, full process control. All is full cost of production to be controlled, not only for changes to control costs, fixed costs must be controlled. Full control is to launch the leading cadres, managers, engineers and technicians to establish cost-conscious, involved in cost control. The whole process of control, mould design, manufacturing, sales process control, and control results to be reflected in the statements, in order to find defects and problems.
②. The principle of local conditions - for enterprises, departments, jobs and the actual cost of the project
③. Exception management principles - to focus on cost control than natural that situation. Because actual costs are often up and down with the budget, such as no significant difference occurred, and not one by one is not necessary to identify its causes, and as long as the focus on the exceptions of non-normal, and timely feedback.
Second, mould the basic method of cost control, means
Mould manufacturing companies involved in manufacturing cost control related to each department and links, so the cost of corporate control of the mould can be broken down into research and development of basic ways to cost control, procurement, cost control, cost control, quality and cost control, marketing, cost control, logistics cost control, cost control and other aspects of human resources to establish and improve die cost control system of enterprises, the implementation of a wide range of management objectives.
1. How to do product research and development stage of cost control
R & D process of cost control is the mould starting point for project cost control, cost control is the mould enterprise product key. Reduce the development costs should be the following aspects:
①. In the pre-mould development, design department will usually provide a quotation, the quotation that reflects the needs of customers target cost. R & D personnel must meet customer specifications and lower cost tooling materials and structural technology to achieve the target cost approach.
②. Elimination will not bring price appreciation has increased product cost function. The mould design is based on the products from customers drawings or samples, often to the mould design stage, designers discovered that a mould to achieve the function of the product is difficult to achieve, or pay a very high cost, this time R & D personnel must be feedback and timely communication with customers is to change production processes, or additional costs caused by themselves.
③. A new project development, it is necessary to consider the full range of cost reduction and control, should be convened die, stamping production, procurement, customer and other project staff in project related meetings, to listen to experienced experts and opinions of the masses as a staff optimize the design to improve efficiency, reduce unnecessary costs risk.
④. The work of standardization and technical support of suppliers is the standardization of the basic requirements of modern enterprise management, is the basic guarantee for the normal operation of enterprises, it encourages the production of the management of operations and to achieve rationalization, standardization, and efficient, is The basic premise of successful cost control. Standardization in R & D operations to save time, improve design efficiency has a significant effect, more and more companies are applying mould PDCAS (plan, do, check, measure, standard) management cycle to guide the standardization of mould technology, the establishment of suitable the company's complete technical documentation standards and management practices manual, and provide research and development outsourcing provider in the reference.
⑤. The creation of innovative, improved proposal management, project management and incentive management system, to encourage mould business innovation and R & D staff to improve and promote the development of technology and management expertise, improve the comprehensive competitiveness of enterprises for the company to create a good economic and social benefits.
⑥. Mould maintenance, repair and life management to strengthen the mould manufacturing equipment and moulds itself to regular maintenance of each mould technology and manufacturing enterprises their daily work, the work is often not taken seriously fits and starts network , the real cost of mould it is a great waste. The accumulation of mould maintenance experience and skills enhancement, and mould the life of the management of R & D department also needed to supervise, which is also a lot of business-to-mould technology moulds the lack of cost awareness.
2. How to purchase cost control.
Procurement activities and die production and business activities of enterprises is closely related to the procurement cost (die steel, spare parts procurement, to outward processing, procurement of equipment and supplies) typically accounts for the largest part of the cost of the mould, how to control procurement costs, will directly affect business performance. Control of procurement costs start from the following:
①. Establish and perfect the procurement system. Enterprises must adopt a strict procurement system, through the procurement process re-engineering and system procurement norms to restrain the business activities of enterprises which is the premise of the procurement cost control.
②. The establishment of raw materials procurement planning and approval process. Mould designers fill purchase orders submitted to the purchasing department, the purchasing department to prepare procurement plans, submitted to the Finance Manager and reported to general manager for approval, in writing, notify the supplier.
③. Purchasing, centralized purchasing, to the needs of various departments together on a regular basis, the procurement unit of the larger purchases can be used as a weight to get a better quantity discount prices.
④. Seize the time for price changes. Prices often with the seasons, changes in market demand and supply, so buyers should note that the price changes in the laws, in the reasonable control of inventory purchases while a good grasp of time.
⑤. The use of competitive bidding and online purchase. For bulk purchase of materials, effective approach is to implement competitive bidding and e-procurement, shop around to find the price of the bottom line, so that the purchaser resident in a favorable position.
⑥. Payment terms and payment options. If the enterprise liquidity, lower interest rates or bank lending can be cash transactions or cash on delivery, this can often enjoy a larger discount. For imported materials, should be noted that the choice of foreign currency and exchange rate movements to grasp. Enterprises can also take advantage of the advantage of a buyer's market CIF procurement, to increase value-added tax proceeds reduce the corporate tax deduction.
⑦. Signed a long-term contracts with suppliers in good faith cooperation. Not only to ensure supply of quality, delivery time, you can get paid and the price of care, rather than a permanent contract can often get more benefits.
⑧. By direct combination of procurement and joint procurement. Direct procurement from manufacturers can reduce intermediate links, to reduce procurement costs, while the manufacturer's technical services, after-sales service will be better; addition, you can form a purchasing alliance with other similar companies, joint procurement, the procurement of a certain scale advantages.
⑨. The purchasing department and the pricing department of the phase separation. Purchasing department is responsible for tendering and procurement of materials, pricing department decides to purchase price and the supplier selection, the use of enterprise information systems, so that the procurement process more transparent. Pricing by the use of department heads who, buyers, Finance Manager, the price workers, warehouse workers, and will evaluate the supplier to provide goods of quality and price were both open and fair selection. Members of regular daily price of raw materials consumed in the market price of extensive consultation, supplier database online survey form, the convening of regular price, make a decision after a comprehensive review. Particle and bulk properties of the new orders, sporadic emergency procurement of materials, accompanied by an approved purchase order to render an account.
⑩. Establish a strict inspection system of procurement. IQC incoming inspection department of the actual implementation of the process of material purchasing the quantity, quality, standards and programs, and offer, through a strict inspection system checks. Do not need the excess of purchase, the poor quality of specification and procurement of the goods without the approval of the right to reject, on the price and quantity are inconsistent with the shopping list in time to correct; inspection to be filled in after the acceptance of the single IQC , acceptance of goods by the warehouse keeper to secondary inspection and record storage. Of quality problems but it can use special mining materials, should be handled discount purchase agreement by the supplier and the procurement and use of department sign it and report to the Finance Department.
3. How to control production costs
According to the mould production features, choose the mode of production and cost control to complete production tasks and reduce the cost of production tooling shop is the focus of corporate management, but also decided to mould the key to business performance.
①. First of all operating procedures to make reasonable arrangements to improve the utilization of existing equipment, reduce product unit costs of equipment depreciation and maintenance expenses, purchase of equipment should be used for process requirements and functions of the model in order to avoid redundant functions with not on, but spend a lot of additional costs to go to repair and maintenance.
 ②. To improve labor productivity. Raising labor productivity mainly workers in the largest number of production per unit of time the product or to create more value in use. This called for the adoption of labor, employment, distribution system reform, strengthening job training for workers, improve job skills, technical innovation and technological revolution, the introduction of new technologies, new processes, new equipment, and continuously improve labor productivity, thereby reducing production costs. Must not engage in formal attendance does not contribute, make hay and other "Siyaomianzai dreadful state" measures.
③. To ensure and improve product quality, reduce disability, defect rate and rework rate, improve the inspection pass rate of the first to advocate "good bad penalty award", is to reduce disability, defect loss, reduce production costs one of the main.
④. Consumption of fixed control law. In fact, the mould manufacturing process is a process of input and output, input-output ratio determines the level of production costs, mould products, has also decided to mould the market competitiveness of enterprises. Use of quota management (fixed material consumption, labor hours quota, quota, fixed costs, etc.) to control costs of the consumption, to reduce the cost of management has become an enterprise control production costs mould of choice.
⑤. Determine the production of consumption norms and create a dynamic filter system. Mould technical department or process departments should make the product development process defined as the consumption of fixed basis, administered by the department or cost control department summary of the mould during production stage the actual material consumption, consumption of fixed combination of control objectives proposed indicators as consumption control standards and enforce the fixed assessment.
⑥. Norms picking process, picking the implementation of quota system. In the development phase of the mould die structure design for complete list of the mould material consumption norms and fully deployed by the warehouse all at once issued after the manufacturing units. If the production process is lost, damaged, etc., need to write another application form, to deal with the approval of relevant departments. This can effectively control the waste and loss. Picking the implementation of quota system on the binding behavior of employees, reduce scrap, improve on-site management level, have a good practical results.
⑦. Supporting performance evaluation. Implementation of cost control can be fixed and responsibilities, appraisal, rewards and punishments to combine supporting the establishment of the KPI assessment indicators, and the remuneration linked to specific responsibilities, so that truly implement cost management and production staff made the whole process.
⑧. The implementation of Project Management (PMP) system to control costs. More and more enterprises in the production organization in the mould has been the use of consciousness to the organization and coordination of project management, improve productivity and reduce production costs.
⑨. Continuously improve the production site 7S, JIT, TPM management, flexible use of PDCAS management cycle, 5W2H, SWOT, 4M1E, 6sigma, 8D improved methods, FMEA, TQC, IE seven practices, brainstorming and other advanced management methods and management theory to guide production planning schedule, the balance of manufacturing processes, process analysis and control of non-performing products site improvements, reduce production costs.
4. How to implement cost control, quality
Cost of quality is necessary in order to ensure product quality, service quality, the costs incurred. Usually include: (1) internal loss costs. Is due to produce a substandard product quality standards, cost incurred, and this part of the product occurred in the factory prior to repair, re-processing, re-inspection fees; can not be abandoned by the disposal cost of failure investigation costs and so on. (2) External costs of losses. Refers to the defective product to the customer after the transfer of costs incurred. Substandard products such as maintenance, recovery, exchange fees, compensation rejects the costs of damage caused to customers, dealing with the cost of damages and other related personnel. (3) external quality assurance costs. Is to provide customers with special and additional program and data quality assurance measures the costs incurred. Quality costs include prevention costs and appraisal costs. Implementation of the cost of quality should start from the following aspects:
①. The implementation of full, and the whole process of cost control, cost concepts into a comprehensive effort to create a "conservation glorious waste of shame" good atmosphere. Cost control is by no means a department, an individual thing, but require each department, or even everyone's efforts. Full cost-conscious culture, and strive to create a "save honor, a waste," the good atmosphere, for the mould corporate cost control is very important. The formation of this trend leading corporate executives and employees need to work together to implement. Of course, it is rooted into the hearts of every member of staff and the formation of the system, the need for staff training, efforts to improve the quality of staff; management also requires constant supervision, so that employees from all aspects of the conscious and consciously work to make cost control into practice, and continue to adhere to develop good habits.
②. In pursuit of the best state of mind to develop a standard cost, the establishment of a comprehensive cost control mould companies performance indicators (KPI), the cost control and employee performance appraisal be linked to, the establishment of cost control incentives.
③. Defined by understanding the seven Toyota waste analysis 4M loss of efficiency with the cost of improving the efficiency and quality improvement of quality combined with the cost of the budget.
④. DAPCDI using cost of quality control steps have on the quality loss cost analysis of the common causes of improvement.
⑤. For multi-input and output due to more fruit full cost budget process, reasonable arrangement of resources in different aspects of the company investment.
⑥. Involving environmental protection and the implementation of ISO14000.
For cost control problems, we should re-examine their stand overall height of the development of science and the application of the best cost control, enhance the competitiveness of enterprises so that enterprises continue to become bigger and stronger.
 ①. Focuses on the long-term strategy for the future development of the internal structure and external environment, together, establish a complete and reasonable and scientific decision-making system, control system, accounting system, examination system and supervision system. From the competitive environment, analyzing the internal value chain, value chain competitors, companies in which the industry value chain, set up a business, suppliers, customers cost-effective integration of three management models, both concerned with the production process, and consider development and design, service and other sectors, both attention and suppliers, customer contact, but also do a good job updating the product life cycle replacement, so that enterprises gain a competitive strategic advantage.
②. Form a comprehensive cost management culture. Establish employee cost consciousness, quality consciousness, brand consciousness and sense of competition, teamwork, leadership and full participation, expertise and resources to continuously improve the quality of the staff situation in a virtuous circle. And to predict in advance, things in control, after the center to prevent, the formation of the whole process of management practices and control systems.
③. The cost of introducing advanced management methods and means. Enterprises should die based on their organizational structure, corporate culture, production and other features to choose their own company's cost management methods, such as: target cost management, responsibility for cost management, value engineering, cost-benefit analysis, ERP information management system to replace the traditional manual cost management tools. In addition, you also need to establish early warning of system cost.


Conclusion:
In recent years, with the increasingly competitive market of domestic mould, mould highly profitable enterprises gradually have become over time. Faced with this situation, re-mould enterprises in capital investment and expansion at the same time on the site, but also hard skills, strengthen the operation and cost control in all sectors, by strengthening the internal management of the various mould companies stopped leaking , control costs and achieve cost reduction and efficiency purposes.