Manufacturing Cost Control of Private Hardware Manufacturing Enterprises - Team Contracting

The term contracting is very familiar to all. China’s reforms began as early as the rural reforms, and they were marked as “contracting production to households (distributing households to households)”, which was later called the “household contract responsibility system for households with joint production” (commonly known as “big contractors”). Its basic characteristic is that while maintaining the unified operation necessary for the collective economy, collectively the land and other means of production are contracted to the farmers, and the contracting households make independent business decisions based on the authority stipulated in the contract, and they must complete the national and collective tasks. To share business results, the general approach is to assign land to farmers in accordance with the principle of the combination of responsibilities, rights, and benefits. It not only exerted the advantages of collective and unified management, but also mobilized the enthusiasm of farmers for production. It is a better economic form that adapts to the characteristics of China’s agriculture and the development level and management level of rural productivity at that time. The peasants' enthusiasm was improved and the rural economy improved.

After implementing the household contract responsibility system for remuneration in rural areas in China, it has played a collective superiority and individual enthusiasm. It can not only adapt to the small-scale operation of decentralized operations, but also can adapt to a relatively concentrated and moderate-scale operation, thus promoting the improvement of labor productivity. The comprehensive development of the rural economy has improved the living standards of the majority of farmers.

The household contract for joint production essentially separates the ownership from the operating right, essentially associating the income from labor with the individual's contribution.

Various forms of internal contracting of the company Chaolong Hardware Net and hardware industry private enterprises to discuss the internal contracting form, many private enterprises after the initial accumulation of primitive capital in the extensive operation, the size of the company is growing, the corresponding management needs to be gradually standardized, Business operations also need to slowly transition to lean management. Workers' wages need to increase. The company's efficiency needs to be increased and costs must be reduced. Many methods can improve the management of enterprises. The implementation of contracting within the company is a method that can be tried, and the effect may exceed the expectations of many entrepreneurs.

The internal contracting of an enterprise can be roughly divided into two situations.

One is to retain the ownership of the enterprise for the company's boss and to contract the right to operate the company to a small number of people. The business owner only makes a corresponding increase in the profit. In the short term, this type of contracting business owner can obtain corresponding profits, and it does not need to be responsible for the company's specific operations, saving a lot of things. This disguised form of converting an existing company into an OEM factory can only achieve substantial benefits for a few people. However, the company's previously good operating system will be affected and may hinder the long-term development of the company. There is not much discussion here.

Another way is to contract with the tube. The company's manufacturing cost control includes labor costs, material costs, energy consumption, and so on. Contracting is based on a variety of cost-based contracting. It is based on the most basic unit of processing and manufacturing, the team as the carrier, and is led by team leader and staff of all team members. According to the actual situation of the company, the company's expenses and the company's contracting carrier are divided into two groups. The team and the group are then allocated according to the prior agreement, which saves more and more. In this way, the company's various manufacturing expenses can be directly linked to each employee. In the past, employees only needed to be responsible for the progress and quality of production, and became involved in all aspects of the company's manufacturing operations. The implementation of the cost management index for production management has become an active participatory management approach for everyone to participate in, which will inevitably improve the sense of ownership of each employee, and realize the conversion of roles that have been managed until I want to manage. Companies can also benefit from savings while at the same time saving costs, and will inevitably increase the active work of employees.

The general principle of contracting is: The resulting savings are = the original one-piece costs * actual production - actual costs incurred. Then the saved costs are distributed between the company and the contract carrier.

The contracting of labor cost includes the contract of labor cost and the piece-rate salary of the whole class. The contracting of labor costs will inevitably involve various malpractices such as the adjustment of staff salaries, layoffs, and increased workload. The ability of the team to combat this risk is limited and is not recommended. Workers’ wages can be divided into two forms: hourly wages and piece-rate wages, and piece-rate wages are currently adopted by many companies because linking the amount of labor directly to wages has a significant effect on the improvement of labor efficiency, but quality assurance is very important. The big problem is that the relatively modest approach is half-piece and half-timing. How the proportion is divided should be defined according to the company's own situation.

Material cost contracting: The original material quota is used as the benchmark for contracting, the team is contracted, the inventory and costing are performed at the end of the month, and the balance is redistributed. The initial performance is to save the use of materials to reduce costs, in contracting The latter stage will inevitably involve lowering the original quota of materials through technological innovation and technology and realize profitability. The material quota is divided into direct production of materials and various types of production materials. Direct production of materials may involve large quantities of raw materials, and the cost is relatively high. The team must consider whether it can afford when formulating the contracting plan.

Energy consumption contracting: This is mainly achieved through improving the overall utilization rate of equipment and improving the efficiency of equipment through technological transformation.

The organization of the contract and the promotion of propaganda, the use of the company's promotional media for publicity, the mobilization of staff meetings, etc., let employees know that through the contract can not only reduce costs for the company, but also allows employees to benefit. Improve employees' contracting enthusiasm.

It is better to find a good team for piloting during the initial organization of the company's internal contracting, so that the chance of success will be high. Because the actual situation of each team is different, let the team develop a suitable contracting plan according to their own characteristics. The company leader determines the feasibility of the plan. After the plan is approved, the contract is signed and a trial is conducted. After the completion of the phased contract, the contracting matters are summarized. Afterwards, they will be promoted to each team. During the promotion, an assessment committee can be set up to allow other teams to compete for contracts and select the best ones. When describing their own contracting plan, the team can add elements such as the team's title, realistic goals, publicity slogans and other elements of team culture to enhance the group's cohesiveness.

The company must set up a special contracting and accounting team to timely calculate the cost of contracting the team and avoid the confusion of the final contracting cost. The company must fulfill the contract contract that month so that the contractor can taste the benefit of the contract as soon as possible.

Explicit information on the cost of the contract, so that all employees can get the information they need in a timely manner, publicize the results of the phased contract, and be fair and open.

For the improvement of related performance indicators after contracting, the company must adopt the method of upgrading the original single-piece costs step by step in combination with the actual situation to achieve the purpose of enterprise cost control. The frequency should not be too high to avoid negative impact on the enthusiasm of contracting.

Issues requiring attention in contracting should establish a monitoring mechanism to monitor the overall contracting. In particular, companies with unsound quality control systems may have quality accidents. Establish an accident handling mechanism and, if necessary, collect a certain amount of risk deposit. Responsibility for contracting and the unification of benefits.

Contracting generally has a positive impact on the cost control of enterprises, especially small and medium-sized private enterprises. Linking the interests of most employees to contracting is the key to successful contracting. Achieving a win-win situation for employees' interests and corporate interests is the ultimate goal. If problems arise, they must immediately find the root cause to resolve and avoid the negative impact of contracting. influences.