Under the unfavorable background of the country's macro-control policy on the real estate market in recent years, the end market of the glass industry has an unfavorable situation of oversupply. On the one hand, glass deep-processing enterprises deal with severe challenges to the growth of corporate income due to vicious market competition. On the other hand, the raw glass, target, sealant, and other main materials, labor costs, etc. rose month-on-month, the prices of conventional coated glass and insulating glass products continued to decline, the profitability decreased year after year, and even many small and medium-sized enterprises suffered losses and went bankrupt. The essence of enterprise market competition is cost competition. To maintain its survival and development, enhance competitiveness, and improve operating profit margins, it is necessary to actively engage in product development and design, material procurement, product production, sales, personnel, and inventory management. The practical and feasible cost control measures of the company will comprehensively improve the cost control work of the enterprise.
1. The cost control problem of current glass deep-processing enterprises
A comprehensive and scientific analysis of the problems existing in the cost control of glass deep-processing enterprises is the precondition for strengthening the cost control of glass deep-processing enterprises. At present, the problems existing in the cost control of glass enterprises in my country are mainly reflected in the following aspects.
1.1 The concept of cost control is one-sided and traditional, and the basic work of cost management is weak
Many glass deep-processing enterprises simply understand cost control as reducing the production cost of products, thus ignoring the cost control of material procurement, business operations, product marketing, capital occupation, etc., and have not formed a comprehensive pre-budget and in-process control of each link. , The cost control concept of post-mortem analysis. Generally, there is no special cost control agency and personnel, and the cost control work is carried out based on the data of the cost report, resulting in low-cost control efficiency and little effect.
With the use of information network tools, the single cost control that is closed between departments has been unable to meet the current production and development needs of glass deep-processing enterprises, mainly in the following two aspects:
On the one hand, there are many links involved in the production and operation of glass deep-processing enterprises, and they need to be supported by a complete cost control system. However, many glass deep-processing enterprises are mainly responsible for the cost control work of the financial department, which seems to be insufficient. The main responsibility of financial personnel is to review and supervise. , The authenticity, procedure, and legality of the cost occurrence is the accounting basis, and the relevant cost data is formed and analyzed, and it is difficult to fully achieve the effect of cost control.
On the other hand, in the production and operation process of glass deep-processing enterprises, each department is a participant in various business activities, responsible for the functions of sales, procurement, production, administrative and financial management, and is the driving force for cost generation. Relevant functional tasks are the main goals, sometimes even ignoring costs. The function of the financial department is to reflect the number of costs incurred and to put forward suggestions for reducing costs from a financial perspective. If the cost work of the entire enterprise is controlled, it is difficult to obtain effective cooperation from other departments. The effect is not ideal.
Figure 1 The cost control problem of current glass deep-processing factory 1
Figure 2 The cost control problem of current glass deep-processing factory 2
1.2 Single cost control work method
Cost control is a company in a certain period, according to the actual situation, benchmarking the relevant indicators of advanced enterprises in the industry, and pre-establishing cost control goals. A series of preventive and adjustment measures are taken by various factors and conditions that affect the cost to insure the management behavior of the realization of cost control objectives. However, many glass deep-processing enterprises have not established comprehensive budget management, cost quotas, and centralized expense management on schedule and quotas. When the market is not good, first consider the use of lower quality and cheaper raw materials, lay off employees, reduce employee wages, and other means to reduce costs, while the period costs are: stop reporting travel expenses, office expenses, hospitality, and other means to reduce costs, the method is simple, rough, often produce a lot of bad effects, affecting the development of enterprises.
1.3 The reward and punishment mechanism for cost control assessment is not perfect
The cost accounting of glass deep-processing enterprises is in charge of the financial personnel, so the assessment of the cost is smoothly handed over to the financial department. Because the financial personnel lacks non-related professional knowledge and experience, it is impossible to go directly to sales, and procurement, In the production process, it is inevitable that there is insufficient understanding and deep experience, and it is difficult to formulate comprehensive and practical assessment indicators. Generally, a fine will be imposed according to a certain value ratio when the production and quality of waste and property suffer losses, and the control of costs is only based on historical experience data, the standards for accommodation and hospitality expenses are set, which are beyond the control of the target points, and there is a lack of an effective and complete assessment, reward and punishment mechanism.
2. Suggestions to Improve the Cost Control of Glass Deepening Enterprises
In response to the problems in the above aspects, first of all, the core leaders of glass-deep enterprises should form a consensus: continuous cost reduction is an important part of the core competitiveness of enterprises. Secondly, it is necessary to establish a correct concept, use appropriate methods, set up a special organization, designate professional personnel to implement the concept, strengthen basic management, implement appropriate methods, continuously improve the process, and establish an assessment, reward, and punishment mechanism. Continuously improve the cost control level of glass deep enterprise.
2.1 Update the concept of cost control and strengthen the basic cost management from the overall and local levels
The purpose of cost control is to reduce the overall cost of the enterprise, maximize the effectiveness of various costs and expenses, enhance the power of the enterprise, and ultimately achieve long-term sustainable development. First of all, starting from the actual situation, considering the balanced development of investment and income as a whole, it is necessary to gradually optimize the aspects of product sales, material procurement, production organization, operation management, and personnel training. The glass deep processing enterprise division establishes a comprehensive budget management system, which is the overall arrangement of the enterprise's business plan in a certain period in the future, formulates the goals of income, cost, expense, and profit, and allocates and controls various internal financial resources and non-financial resources. , assessment, to effectively coordinate the production and operation activities of the enterprise to achieve the established goals. Secondly, choose appropriate control methods in all aspects of production and operation, such as: establishing a management and control model integrating sales, production, and inventory information, reducing fixed costs, converting fixed costs into variable costs for management and control, and constantly optimizing. Realize a virtuous circle, so that various production and operation activities can be carried out in a standardized and efficient manner.
2.2 Establish and improve the cost control system and clarify its job responsibilities
Glass deep processing enterprises should set up a cost control organization headed by core leaders to be fully responsible for cost control work, and to systematize, program, institutionalize, specify, post, and routinize cost control issues involved in all aspects of production and operation. . With this institution as the center, each department designates a full-time or part-time person to fully participate in and cooperate with the relevant work, clarify its related responsibilities, strengthen the connection and communication with each department, and use professional methods to summarize the relevant data provided by each department. Analyze and find out the problems and deficiencies of cost control in each link of the production and operation process, coordinate and organize relevant leaders and relevant personnel from relevant departments to hold special meetings to study and formulate rectification plans, and form written materials for feedback to the decision-making level of the enterprise. Supervise the implementation of relevant departments, make the work process of the enterprise cost control system form a closed loop, continuously improve the lack of each link in the work process, form a long-term mechanism, and continuously improve the level of cost control.
2.3 Improve and perfect the cost control method based on the actual situation
The more complex the production and operation activities are, the more cost control items will be involved, and the more difficult it will be to manage and control. Enterprises should focus on budget indicators and choose appropriate management methods to control them. In particular, cost control institutions should, sort out, decompose and refine the cost indicators, and continuously improve the cost control methods adopted.
2.3.1 Improve the cost accounting system
Cost accounting is the process of accounting for accounting elements such as production costs, manufacturing expenses, and period expenses generated in the production and operation process of an enterprise. It is an important starting point for cost control and requires the participation of the finance department and related departments. Therefore, the cost accounting system is constantly improved. Contribute to the formation of comprehensive, whole process control.
2.3.2 Control of material procurement costs
The cost of raw materials accounts for more than 60% of the total product cost of glass deep-processing enterprises, so it is of great significance to do a good job in the control of raw material procurement costs. However, there is often information asymmetry in the procurement process, which increases the procurement cost of raw materials to a certain extent. Therefore, glass deep processing Enterprises should insist on improving the procurement model of bulk materials through bidding and bidding, eliminate price differences to the greatest extent and reduce procurement costs through competition between different suppliers. In addition, enterprises should combine product output, quality requirements, and Factors such as the scale of suppliers, reasonably determine the optimal purchase batch and purchase volume and obtain the lowest comprehensive purchase cost.
2.3.3 Formulate product cost unit consumption and carry out strict product unit consumption control
Glass deep processing enterprises should sort out and improve the variable costs in the cost components of various products, and determine the quotas for various materials, energy, and labor costs (which can be fine-tuned monthly or quarterly), to control the consumption in the production process. In addition, it is necessary to refine the work responsibilities of each post in the production process and assign the responsibility of controlling unit consumption to specific individuals, to urge production personnel to complete various production tasks seriously, steadfastly, and guarantee quality and quantity according to the consumption quota.
2.3.4 Strengthen non-productive cost control
According to the budget and implementation method of "full coverage of the enterprise, full management of the chain, full control of details", strictly implement the relevant system of expense approval and implementation, and effectively ensure that all non-productive costs are budgeted before they occur, and things are under control, after the event, there is analysis and assessment to eliminate unnecessary expenses and fraud, link cost control with relevant job responsibilities, and rely on budget management and budget execution management to control non-productive costs.
2.4 Establish and improve the assessment mechanism to deliver the assessment results promptly
Enterprise cost control agencies, on the one hand, should sort out the cost control responsibilities of relevant positions in each department in detail, and implement them in specific positions and personnel. The departments and individuals tasked with the task will be given bonuses promptly to improve their enthusiasm and sense of responsibility for cost control work. For departments and individuals that fail to complete the target tasks on time, relevant special meetings will be organized promptly to analyze the reasons, clarify responsibilities, and strengthen their cost reduction and increase. Awareness of effectiveness, and giving corresponding and appropriate punishment.
Figure 3 The cost control responsibilities of relevant positions in glass deep-processing factory 1
For glass deep-processing enterprises, only by controlling the cost at the advanced level in the same industry, can the enterprise cope with the brutal market competition through a flexible price adjustment, continue to maintain and expand the market share, enhance the core competitiveness, and stabilize the profits of the enterprise.