1. Improve the basic work of cost management When enterprises manage costs, they should first focus on the basic management of costs.

Basic work is the cornerstone, the "standard" for implementing cost control, and the basis for process control, variance analysis, variance correction, and performance appraisal.

However, in reality, most state-owned enterprises have not implemented cost control in practice. They are just shouting slogans and it is superficial, and costs have not been truly effectively controlled.

For example, the consumption of materials is too large, the working hours quota is inaccurate, and the details of expenses are not enough.

The basic work for enterprises to do a good job in cost management mainly starts from the following aspects.

First, improve the quota standards: (1) The human resources department should organize the revision and improvement of the working hour quota standards; (2) The technical department should organize the revision and improvement of the material consumption quota; (3) The economic operation department should organize the revision and improvement of the tool and energy consumption quotas

, it is necessary to organize inspections, supplements, and installation of measurement standards.

Secondly, the enterprise's comprehensive management department must organize the revision and improvement of management processes and systems.

In addition, the finance department should organize the classification standards of cost habits and determine the expenditure scope and standards of cost expenses.

2. Efforts to reduce enterprise operating costs. The focus of cost control is during the operation process. Enterprises should strive to reduce total operating costs from seven aspects: reducing design costs, procurement costs, quality costs, sales costs, work processes, capital occupation, and inventory reduction.

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1. Control design costs. About 80% of a product cost is determined by the design stage, so attention should be paid to the control of design costs.

First of all, every engineering and technical personnel in the development department must establish the idea of ??cost control. From the design stage, they must consider cost control in terms of process, manufacturing, procurement, etc., strengthen coordination and cooperation with the sales department, and financial department, and be fully familiar with customer needs.

, Understand market prices, use the principles of value engineering, start from function-cost analysis, consider the rationality and necessity of functions, and adhere to the principle of "just as appropriate"; second, the technology development department, sales department, and finance department must

Carefully summarize some previous successful experiences, use the principles of value engineering, re-examine the functions of the enterprise - cost allocation issues, and provide all-round support for further participation in market competition; third, the technology development department should take the lead in making the next generation of new products

function - cost analysis work; fourth, each department must use the principles of value engineering to re-examine the value-added nature of processes and procedures.

2. Control procurement costs. Normally, procurement costs account for 50% to 80% of the total costs and are the focus of traditional cost management.

To control procurement costs, enterprises should do the following work: first, use scientific decision-making analysis methods to reasonably determine economic order quantities or economic batch sizes, decide on procurement projects, select supply units, and decide on procurement time; second, further promote centralized procurement

system, establish a unified procurement platform for raw materials, auxiliary materials, low-value consumables, office supplies, and external services to achieve full sharing of resources such as prices and suppliers; third, promote the direct supply system and gradually eliminate intermediate suppliers; third

Fourth, establish a procurement responsibility system and strengthen the sense of responsibility of purchasing personnel and price reviewers; fifth, rectify the purchase prices of auxiliary materials and sporadic materials, and the purchase prices should gradually decrease on the basis of the previous purchase and sales price; sixth, explore the establishment of a procurement

Reward and punishment system, rewards and punishments should be linked to leaders and individuals; seventh, strengthen technical research capabilities and reduce procurement costs.

3. Control quality costs. Improving quality and reducing costs are compatible.

Quality is the basis of cost.

It is necessary to break the old concept that improving quality increases costs and reducing costs harms quality. Improving quality will actually lead to cost reductions.

To improve product quality, we must implement the spirit of "prevention first" and appropriately increase inspection fees and prevention fees, which can significantly reduce losses caused by poor quality.

To improve quality costs, we must strengthen quality in the work process to reduce waste loss, reduce work, reduce rework time, and reduce resource consumption, thereby reducing the total operating cost; all departments of the enterprise further strengthen the control of manufacturing quality costs and reduce quality costs.

The scope of control has been expanded to the fields of service, design, management, and research; the quality cost management system of each functional department has been improved, and the work quality goals of functional departments have been set.

4. Control sales costs. While the sales department is expanding sales results and increasing market share, it must also strengthen the use efficiency of sales expenses and relatively reduce costs.

First of all, the sales department must study and promote a marketing system of large sales and large services to reduce costs through scale operations; secondly, the sales department must carefully study national and local tax policies and reasonably carry out tax planning for branches; thirdly, sales

The department should use the relevant knowledge of point distribution theory to explore the rationality of the sales branch point distribution; fourth, the sales department should use economic decision-making methods to reduce transportation costs.

Fifth, the sales department should use cost-optimal decision-making to improve the efficiency of advertising expenses.

5. Optimize the work process. The work is composed of a series of work processes or steps, starting from the procurement of raw materials and ending with the final product or service. Each process should add value before sending it to the next process. Each process contains human resources.

Resources or machines wear out and are wasted if they are not engaged in operations that add value.