Processing manufacturing market competition

How to survive in the fierce competition in the market at home and abroad, how to reduce costs to increase revenue, for processing and manufacturing enterprises is the imminent and urgent need to solve the problem. Under the difficult situation, the introduction of advanced cost management model to manage the enterprise is an important step to stand firm in the market competition. Cost management, including cost forecasting, decision-making, calculation, accounting, control and other aspects of the production and operation process of the enterprise on the object of the management of the cost of the behavior of the general term, can provide cost information for the management, and help their management. Provide cost information, and help to make management decisions. Through reasonable cost management to reduce costs on the survival of enterprises is of great significance: reduce costs can directly increase the profitability of enterprises, to bring good returns: and can promote the enterprise to improve the level of business improvement, improve the competitiveness of enterprises. However, some processing and manufacturing enterprises lack of innovation of enterprise cost management mode, there are cost management system is not perfect, managers cost management concept is not strong lack of strategic, cost information is obsolete, cost control is not strong, lack of incentives and other issues, seriously restricting the processing and manufacturing enterprises and the development of the economy.

1. Cost management system is obsolete the world economic situation is changing rapidly, the market pattern is also constantly changing, the cost of the product in the circulation area of the cost increases greatly. In the traditional cost management system, the scope of costs is very limited, including only raw materials, labor costs and other costs incurred in the production field, simply reduce consumption, saving money as the only means, ignoring the product production and technology development, training of personnel and the cost of the circulation area. That increase production, suppress workers' income, maintain sales volume is to reduce costs, without considering the consumption capacity of the market, resulting in short-term expansion of production, the rigid implementation of the national regulation as a corporate cost management, and even lead to the sale of inventory due to difficulties in the slow recovery of funds, hindering the process of expanding the reproduction of the enterprise, and reduces the overall competitiveness of the enterprise.

2. Managers cost management concept is not strong, the lack of strategic market economy so that enterprises become the main body of self-financing, business managers to decide whether the correct decision-making determines the survival of the enterprise, the market-oriented experience management model is different from the planned economy when the government directives oriented to the old form of the economy, but some business managers are not fully aware of the change in their roles, and still hold old "Rely on the government" bad ideas, do not care about the survival of enterprises, in the cost of the division, adjustment and inventory inventory haphazard calculations, and even fabricate data, artificially adjusting the proportion of costs, so that the cost management can not play the application of the effect of a piece of paper. Or there is a certain cost management ideas, but the lack of strategic thinking to guide the cost reduction at the same time did not improve the long-term competitiveness of enterprises, to a certain extent, the loss of market share and some customers. In-depth analysis, not outside the processing manufacturing enterprises mostly lack of sustainable development of the backbone, in the entire industrial chain in the price of competitiveness, cheap labor as a way to profit the lowest end of the mT core technology lack of innovation, in the international competition is at a disadvantage, repeatedly suspected of dumping, coupled with trade frictions and frequent fluctuations in the exchange rate, processing system of enterprises with huge economic losses.

3. Cost information one-sided traditional processing manufacturing industry belongs to the highly labor-intensive enterprises, generally to the output and direct operating time to implement the distribution of labor, but with the development of science and technology and technological advances, the worker's operating time in has not been the main aspect of the cost, but the depreciation of the machine, such as technological property rights and so on constitutes the main part of the cost. Therefore, the one-sided costing method, so that business decision-makers to inaccurate cost information for decision-making, the development of the enterprise's operation is extremely misleading.

4. Lack of incentive mechanism traditional cost management system of obsolete management style has not adapted to the new situation of the management system. In the past, for the management of the cost of more than relying on the intervention of higher administrative departments to administrative means of political way to rigidly stipulate the cost of the composition of the market economy, the market has become an important guide to the cost, but some business managers are still for the change of mind, in the enterprise cost control and management, the production units in the cost of the management process of the responsibility of the identification of the cost of the process is not clear, and can not be implemented to the individual or a specific unit of work, or Lack of incentives.