What is the specific content of the production cost 53 model?

The production cost 53 model refers to five tangible costs and three intangible costs. Five tangible costs include direct materials, direct labor, manufacturing costs, energy costs and management costs, and three intangible costs include quality costs, capital costs and waste costs. The production cost 53 model was first put forward by a well-known domestic production management expert in the production management training and consulting work around 2005, and gradually accepted by everyone, thus forming today's production cost 53 model.

The specific content of the production cost 53 model:

From the financial point of view, production cost (workshop cost) consists of four parts: direct materials, direct labor, manufacturing cost and energy cost (energy cost was increased when the country adjusted accounting standards around 2000), that is, production cost (workshop cost) = direct materials+direct labor+manufacturing cost+energy cost. At this time, the production cost is actually the cost of the product entering the warehouse after it is manufactured from the workshop. After completing this accounting step, the accountant will amortize the company's management expenses, marketing expenses, advertising expenses and financial expenses. On the product cost, plus a reasonable profit, so as to get the sales price of the product.

I. Five tangible costs

When amortizing the expenses to the workshop cost, it also includes the management expenses, which are amortized as a whole by the company. In order to give easy-to-understand training to production management personnel (non-financial personnel, so some financial terms are difficult to understand) and improve their understanding of production costs, we can separate the assumption of management expenses incurred by production departments from the overall management expenses of the company. In this case, the production department will have management expenses. At this time, the production manager can understand the production cost as: production cost (workshop cost) = direct material+direct labor+manufacturing cost+energy cost+management cost, which is wrong from the financial point of view, but it is easier for non-financial production managers to understand and is also conducive to their management and control of production costs. At this time, these five production costs make us tangible in daily production management, so we call them five visible costs.

Second, three kinds of intangible costs

In the field of production management, quality cost, capital cost and waste cost are called three intangible costs, which are relative to the above five tangible costs. Among them, quality cost is mainly composed of prevention cost, appraisal cost, internal loss cost (also called failure cost) and external loss cost, which is the standard content in quality management. Capital cost, generally defined as financial expenses, is the expenses incurred by the company's capital occupation. The core of waste cost is the "seven kinds of waste" in Toyota production mode, which has been recognized by everyone in the production management industry. These seven waste costs are:

Production waste, inventory waste

1. Lean production management believes that "inventory is the root of all evils", and all improvement actions will be directly or indirectly related to eliminating inventory.

(1) Unnecessary waste such as handling, stacking, placing, protective treatment and searching.

(2) Make the first-in first-out operation difficult.

③ Interest loss and production management expenses.

(4) The value of commodities will decrease and become sluggish.

⑤ Occupy workshop space, resulting in repeated construction of workshops and warehouses. ⑥ misjudgment of equipment production management ability and personnel demand.

Second, the intangible losses caused by inventory will never be inferior to the above-mentioned tangible losses. Lean production managers believe that inventory will hide problems, and "problems" are regarded as treasures by lean producers. If we can constantly find and solve problems, we will continue to generate benefits.

1, there is no tension in production management, which hinders improvement:

2. If there is more inventory, the adverse consequences caused by mechanical failures and defective products will not be immediately apparent, and there will be no countermeasures.

3. With sufficient inventory, when there is a problem, you can use the inventory first, and the problem can be solved slowly or even not. At the very least, it is covered up, there is no hurry, and it will not be investigated by superiors, so the work performance of this department will come out.

Production waste II. Overproduction (overproduction or premature waste)

First, TPS emphasizes "just-in-time production".

Second, doing more can improve efficiency, and doing it well in advance can reduce the loss of production capacity (don't do it for nothing, isn't the machine still stopped? )

1, used up the cost of materials and labor in advance, and didn't get any income.

2. Hide "waiting for waste" and let managers ignore the occurrence and existence of waiting.

3. The backlog of WIP makes the production cycle L/T longer (invisible), which will enlarge the working space on site and unconsciously devour our profits.

4. It is difficult to carry and accumulate garbage, and it is difficult to enter first in first out.

Production waste III. Quality defects (waste of defective products)

1. Any defective product will cause waste of materials, machines and labor.

2. Early detection of defective products makes it easy to determine the source of defects, thus reducing the generation of defective products.

The key is to do things right the first time, and the product is "zero defect"

Production waste IV. Transportation (waste disposal)

First, most people agree that handling is invalid, while others think it is necessary.

Second, use the "conveyor belt" to overcome it, okay?

1, take and put waste; 2. Waiting for waste; 3. Excessive waste of work in process; 4. Waste of space.

Three, waste disposal also includes waste placement, stacking, moving, sorting and other actions.

Production waste and disposal (processing waste)

1. Definition: It refers to unnecessary processing irrelevant to the project schedule and processing accuracy.

2. Some handlers can be omitted, replaced, reorganized or merged.

3. Many times I will get used to it and think that the present practice is better.

Production waste VI. Action waste

12 kinds of action waste:

Hands are free. One hand is empty. A discontinuous pause. The amplitude is too large. Right hand exchange. Walk more. The turning angle is large. Change state on the move. Unknown skills. Stretch back. Bend over. Repeat unnecessary actions.

Production waste seven, waiting for waste

Variety switching of production line. When the workload is small, you don't have to do anything. Often lack of materials, equipment idle. The last process was delayed, and there was nothing to do downstream. The equipment is out of order. The process of the production line is unbalanced. Uneven work and rest Manufacturing notice or design drawings have not been delivered.