The meaning of CNC process cost control

The meaning of CNC process cost control

        The enterprise is the basic driving force for economic development and the source of capital accumulation. Enterprise profit is the condition for the survival of the enterprise. Of course, maximizing the benefit is the goal of the enterprise. According to the current development status of the enterprise, the most important way to improve the efficiency is to control the cost. Including design cost, purchase cost, sales cost, etc. For many years, companies have been exploring this aspect, but they have never found a suitable method to carry out process production cost control. It is a summary of the experience and lessons of previous cost control, changing ideas, and realistic and innovative production cost control methods. Deeper cost management content.

      Process cost control is slightly different from traditional cost management methods. The main difference is that the traditional control indicators are illuminated and issued from top to bottom, that is, from the functional departments of the factory, from the upper level to the next level, to the individual Basically it cannot be achieved, because the indicators are theoretically and professionally strong, and are not closely related to the operator and related behavioral activities, which makes the control work impossible to implement at all. The process cost control first considers the relationship between the operator’s behavior and the cost movement. The bottom-up motion program achieves the goal of the entire product cost control. Second, the process cost control realizes the passive recording of the cost after the engagement and the initiative before the event. The change in control has triggered a change in cost management.

At present, process cost control has received widespread attention in the machinery industry. The main reasons are the following:

         1. Product market competition needs: With the continuous development of the socialist market economy, product competition will become more and more fierce, and the focus of competition is mainly on the price of the product. From an industry perspective, companies with similar products Different design models and different process methods reflect different cost control, which results in a difference between the average level of each enterprise and the society. Some companies can make profits with products at the same price, and some companies may not necessarily make profits. Even loss. This is to find out the reasons for the differences. The main problem lies in the level of cost control. Therefore, in order to enhance the competitiveness of the product market, it is necessary to control the cost.

2. The need for the survival and development of enterprises: During the planned economy period, enterprises made great contributions to the development of the allergic economy, and the country also took good care of enterprises in every possible way. During that period, the accumulation and investment of capital were managed by the state. Consider the knowledge to do everything possible to complete the tasks assigned by the state, the development of the enterprise, and the income of employees are all considered by the state. After entering the market economy, many economic activities are carried out in accordance with the laws of the market economy. The allocations of various resources is based on the market. Government intervention is gradually weakening. Especially after joining the WTO, in all WTO agreements, there are More than 90% of the agreements bound the government, that is, waiting for enterprises to rely on government support to develop and survive will become very difficult. Enterprises can only rely on themselves. To survive and develop, they must follow the laws of the market. The accumulation of enterprise capital stems from the ability to make profits, and development depends on the support of maximum benefits. From an enterprise perspective, under certain conditions of price, to improve efficiency, it is necessary to reduce costs, control and reduce costs. Many companies are now actively exploring the means and methods to control costs. Everyone knows very well that who can control costs well will have the initiative in corporate development. Therefore, if companies want to survive and develop, they must control costs well.

3. The need to increase employee income: the increase in corporate orders will increase the workload of workers. If employees’ personal income is disproportionate to the increase in workload, it will directly affect workers’ enthusiasm and motivation. If the order cannot be completed on time, how can the company develop? Increasing the income of employees is as important as increasing the economic benefits of enterprises. Leaders from all walks of life in enterprises must take this indicator as their main task. The 18th National Congress of the Communist Party of China proposed to build a well-off society in an all-round way, and to improve people’s living standards as the task of the whole party. The focus of work, enterprises should do more in this regard;