 |
Kaizen Methodology |
| |
Tel：+86(0)755 22352797
Fax：+86(0)755 22352797
E-mail：ck@ckaizen.com
Web：http://www.ckaizen.com
Add： |
2F, Block A, Oastar Building, Zhongkang Road, Shangmeilin, Futian District, Shenzhen City, Guangdong Province, China
|
|
|
 |
How to implement the activities of TCD
Enterprises have encountered the issue of cost:
● How to reduce costs to establish the correct line of thought?
● Do not know where the costs are high, we will certainly do not know where to drop! Lost in the reduction of costs, how to find the direction of lower costs?
● Do not know how high the cost, we will certainly do not know how to fall! How to identify and determine the factors that increases cost, raise the cost to identify the causes and conditions?
● Do not know how much the high cost? Certainly do not know how to fall! How to find the space to reduce costs (the amount of cost can be reduced)?
● Do not know how much to drop, it can not be 'squeezed out the last drop of water in the towel' on the lower cost is not good! How to establish cost reduction goals?
● Do not know how to fall, not one penny has dropped! How to develop and evaluate cost control programs to ensure the effectiveness of measures to reduce costs?
● In-house, only the cost, there can be costs down everywhere! TCD how to carry out activities?
● Lower cost, such as weight loss, today lost a rebound tomorrow how to do? How to no longer continue to raise the level of assurance cost?
Cost decomposition model:
Strategy to cost down of external channels
The purpose of modern cost management should be based on cost as little as possible to obtain the value of as much as possible, so as to provide the best possible profit-making basis, thereby enhancing the cost-effectiveness. Dramatic changes in the economic environment, market competition has become fierce, the cost advantage obtained for the survival of an enterprise is of utmost importance. Should pay close attention to the whole market and competitor trends to identify problems, adjust and change their strategy and tactics. From the strengthening of strategic cost management, the enterprises in product development, the design stage to increase the scientific and technological content of inputs, through the restructuring of production processes to avoid unnecessary production of the product life cycle cost management and lower the cost of continuing to The purpose of cost control.
Enterprise strategic cost advantages are:
1. Choice of scale effect
The expansion of the scale of cooperation has led to specialization, the level of technical management of all factors of production to achieve the configuration of a new balance, stimulate the productivity of a new, significantly reducing costs. However, when the size of more than a certain degree of coordination will lead to management complexity and lower efficiency, the cost will increase. Choose the size according to market demand, firm size and cost structure of the decision, such as the Shanghai Hualian supermarket chain in the 35 The following is a loss, when the development of 35-70 is little profit, the current 165 has been developed as a cost margin of 12%.
2. Control location factors Location is in labor, management, infrastructure, raw materials, such as tax burden differences is an important source of excess profits. Inherent in its businesses outside the geographic location to historical reasons, but through the relocation of infrastructure, moving, replacement and other methods to reduce real estate costs. This factor in the spatial organization of production, raw materials and product distribution of the cost of transport impact. Select location to be considered: near the origin of raw materials; adequate energy supply; transport costs relatively low; the distribution of human resources; close to consumer markets.
3. Balanced production and regulation of fluctuations in market demand
The utilization of productive capacity of the enterprise depends not only on the environmental conditions and the investment behavior of competitors, but also through production and marketing strategy for the choice of their own place under the control of the decision to reduce or increase the cost of doing business in a reasonable degree. Enterprises from the production and marketing of these two areas to be controlled. Control of the production process is designed to ensure a balanced and stable production. In sales through planning regulation to some extent, fluctuations in demand, such as product development to the cyclical, seasonal products was not obvious to study the stability of customer demand, off-season withdrawal season wins, fluctuations in demand pushed the competitor’s major market segments.
4. Appropriate linkages and appropriate integration
Too much self-restraint, will the direction of business development in depth, but it will result in the enterprise resource dispersion, slow response on the market; and excessive outsourcing, enterprises will rely too much on the outside world, the self-development non-specialized. Value chain activities are interrelated, changes in the implementation of an activity which sometimes produce unexpected results of lower costs. Value chain, the cost of internal factors are often interrelated, enterprises can accurately recognize and take advantage of this link is the cost of the situation can change. Such as the Lenovo computer company in Dongguan, Guangdong Province has opened more than 200 parts factories, more than 20 assembly and testing center, the cost advantages, is to correctly understand and deal with a model of integration and linkages.
5. Recycling value chain
Reconstruction of the value chain to achieve significant cost advantages, companies have experienced a period of twists and turns in the re-confirmation of the major factors that affect the cost to change the basis of its competitiveness. Recycling method of the value chain such as: the use of different techniques; differences in the use of automation; variable indirect sales to direct sales; the introduction of new distribution channels; prior to or after the integration. Southwest Airlines has the largest airport shuttle long-term, with many large companies face confrontation, poor profitability, the river was a separate track, in the small and medium-sized cities to provide short-range low-cost services: downtime to re-take-off as long as 15 minutes in order to increase the number of flights density, equivalent to the extension of the voyage; machines are not set up first-class, non-designated seats, non-feeding, low fares cut; passengers to the boarding gate ticket vending machines in order to save the commission; this recycling of the value chain, access to clear cost advantage.
6. The long-term maintenance, consolidation of cost advantage
Cost advantage of the strategic value of its durability, cost advantage only when the source of business for competitors, it is difficult to copy and imitate, and the cost there will be persistent. Advantage of cost-effectiveness There are two basic ideas: First, the development of cost-effective source of lasting advantage, and the expansion of their number; The second is to build barriers to prevent the spread of the experience of the invasion of competitors, such as the creation of the United States is to rely on proprietary Microsoft exclusion the 'window' Office software, and apply the provisions of protection of intellectual property rights and other legal barriers to the consolidation of its cost advantage.
The internal channels of cost down
1.The carried out these steps of cost down activities:
|
Step |
Name |
Description |
Distinction |
|
Step 1 |
Target set of products |
. Make money survey loss products.
. Product revenue (profit), the future development of policy and strategy will be reviewed.
|
Potential loss |
|
Step 2 |
Set the goal of cost down
|
. Cost structure to start with the actual cost of the investigation.
. Ideal cost (target cost)
. Losses and the distinction between non-loss |
|
Step 3 |
Cost analysis associated with potential losses and project to establish |
. Products related to start other projects.
. Works in other cost items associated with the loss of Li |
|
Step 4 |
A thorough grasp of significant loss |
. Loss of the structure of collation system map
. Grasp the amount of losses (more than 20% of the total cost)
|
Significant loss |
|
Step 5 |
Ideal settings |
. Established to improve the direction
. Not only to improve significantly in the loss (loss of the improvement), an innovative program to review the (potential loss of the improvement) |
A comprehensive review |
|
Step 6 |
System according to finishing the project strategy |
Made 1 to 5 strategy chart |
C, D projects to set up |
|
Step 7 |
The case of an individual to improve the situation of the establishment and implementation of tracking |
. Improve the implementation of the system, the project team
. Tracking the status of implementation of individual improvement
|
|
Step 8 |
Results confirmed |
. Other gains and losses on other products (on other accounts)
. Budget Management
|
Follow-up review |
2.Potential losses and costs associated
3.Cost down and losses related to the improvement of the approach (cases)
|
|
