Production costs mean costs that are associated with the production and sale of released goods. In the financial statements, they are reflected in the form of cost price. In this case, production costs consist of: material costs, labor costs, interest on loans.
Instructions
Step 1
Reduce the labor intensity of products, increase labor productivity and reduce the number of administrative and service personnel. Indeed, a significant part in the structure of production costs is occupied by payment of labor.
Step 2
Achieve a decrease in the labor intensity of products and an increase in labor productivity through the mechanization and automation of basic production, the development and further use of progressive and high-performance technologies, as well as the replacement and modernization of all obsolete equipment.
Step 3
Improve the organization of production and labor. Rent additional equipment if necessary. At the same time, proper organization of labor is important for increasing labor productivity: prepare workplaces, complete their workload, use advanced methods and techniques of labor.
Step 4
Analyze the costs spent on the production of goods. Create a plan to conserve all of these resources and use them wisely. Apply resource-efficient workflows. In this case, it is important to increase the exactingness and widespread use of quality control of all incoming raw materials and materials from suppliers.
Step 5
Reduce the cost of depreciating all of your existing production assets by making the best use of them and maximizing their utilization.
Step 6
Determine and observe the optimal batch size of the necessary, purchased materials, the optimal batch size of products launched into production. Solve the problem of whether you yourself will produce or purchase from other manufacturers any individual elements, as well as certain components.
Step 7
Purchase raw materials and supplies in bulk. This will help reduce the costs associated with placing orders for specific purchased goods, with the subsequent acceptance of these products, control over the timely passage of invoices.
