Cost control of the soft underbelly of small carton processing companies

In recent years, although some small and medium-sized carton processing companies have gone out of the shadow of price warfare, due to factors such as reductions in staff productivity, many companies’ management levels have decreased significantly, especially those who have targeted cost management and control personnel as laid-off workers. There have been phenomena of stagnant profits.

To realize the rapid development of small and medium-sized carton enterprises, the operators of small and medium-sized carton companies must re-examine the importance of cost management and control. They should start from the enthusiasm and creativity of the workers and do a good job of transforming elements to achieve standardized management.

For carton processing companies, the material consumption and the labor cost of employees are the two major components of the cost. As for the new value created by the laborer for the society, it is the net income of the company. Usually these two elements are called materialized labor and activities. Judging from the proportions of the two major elements, materialized labor accounts for a large share, and living labor is relatively small. Therefore, the carton processing enterprise must solve the contradiction of cost control and should grasp the main aspect of the contradiction, that is, the control of materialized labor.

Many companies have a management misunderstanding in reducing production costs. They often use labor costs as the main means to reduce the remuneration of operators, and some will also combine “three shifts” with “one shift,” and a large number of production personnel will be compressed. The potential has not been diligently tapped, equipment operation rates have not been fully realized, raw materials and power consumption have remained high, and cost control has not been effectively implemented; on the other hand, the increase in the labor intensity of workers and the reduction in wages have affected Their enthusiasm has created a vicious circle.

In the production activities, materialized labor and living labor are mutually dependent and mutually transformed. The improvement of living labor efficiency can lead to the improvement of the efficiency of materialized labor and the reduction of material consumption, so as to achieve the purpose of cost control.

If the consumption of materialized labor is reduced, some of the savings will be converted into wage income for workers so that they can obtain certain material benefits. Naturally, laborers will actively control materialized labor to achieve low-cost operations.

The premise of achieving cost control through factor transformation is to do a good job in determining the cost control target value of different types of carton. It should be based on the actual production and operation of the company and scientifically measure and determine a reasonable cost control target. It is necessary to prevent the target value of the cost from being set too low and lose its incentive effect. It is also necessary to prevent the cost target value from being set too high and lose the significance of cost control. In short, SME carton enterprises must pay attention to strengthening cost control in order to achieve sustainable growth in their profits.