Has your company also been affected by these hidden costs in the factory?
Many factories lack human resource management and believe that talent is infinite. However, the departure of every factory technician is a significant cost for the company. Because the company has to bear the initial cost of recruiting new employees for this position, as well as the risk of whether the new employees are suitable for the position, the new employees also go through a period of adjustment before adapting to the factory's processes. The departure of important senior employees may also result in the loss of important internal data or information, and after their departure, they are likely to enter the companies of their competitors. So, the loss of employees, especially old employees, undoubtedly brings expenses several times higher than the company's income.
Many bosses always believe that employees working overtime without sleep or food after work is a phenomenon of dedication.Little do they know, this may imply high costs.There are three reasons:
Firstly, the reason for overtime is not necessarily due to heavy work tasks, but rather due to employees' low work efficiency. Overtime means low efficiency.
Secondly, overtime consumes more energy and physical strength from employees, seriously overdrawing their health. In the long run, it will prevent some important employees from exerting their effectiveness in the long run and pose a hidden burden to the company. Once an employee causes an accident due to long-term overtime, the company will have to pay a heavy price for it.
Thirdly, overtime employees do not necessarily have to be "on duty". Some employees, in their spare time, use the company's resources to engage in their personal affairs and also receive overtime pay from the company. Many important losses and data loss in enterprises occur during off hours.
The chaos in factories is often caused by processes, which is a common problem in enterprise management. They bear high costs for this, but they have always turned a blind eye to it.Process is the industrial chain of enterprise operation, just like an assembly line. Without a scientific and reasonable manufacturing process, systematic control over various processes is lost, and many jobs are abandoned halfway. There are still many jobs that need to be reworked, and everything is unique. But it has to be admitted that this will become a tangled mess that wraps the factory's feet forward.
The operation of a factory is nothing more than a race against time. A meeting is a collective activity for factories to solve problems and issue instructions, but it is also a high cost business activity.Because this activity is often a collective activity involving many leaders. Every minute counts towards the total number of attendees, and many managers in companies have not mastered the skills of holding meetings, resulting in the six no's phenomenon of "no preparation before the meeting, no theme during the meeting, no execution after the meeting, unnecessary attendance, no time control, and no margin for speech".
There is a famous saying in human resource management, 'Put the right people in the right positions'.Some factories arrange technicians to spend a lot of time mopping, cleaning, and wiping machine tools every day, and some leaders even take the lead in participating, which seems like a good thing.In fact, this reflects a very clear mentality of the bosses, who believe that these employees are recruited for use, as long as they have the manpower to do it, they don't have to spend more money on it. But we found that they paid a high price for it.
There are different ways of procurement in different companies, but this is an important cost component that affects factory operations. We often only focus on the price and quantity of procurement, and find it difficult to see other factors beyond that.There was once a product branch of a mold company. When working on a new project, the project team had a daily operating cost of 80000 yuan. However, before the product was launched, the procurement department spent a week looking for a low-priced supplier to purchase packaging worth over 100000 yuan. This was supposed to save procurement costs, which directly led to the entire marketing team waiting an extra week and unable to sign contracts with customers. And this phenomenon actually exists in many enterprises. Blindly pursuing the reduction of direct procurement costs while ignoring the coexisting "hidden costs". Of course, reducing the direct cost of procurement does not conflict with this article. Here, we want to talk about the procurement department of the enterprise, which needs to comprehensively weigh various indicators from the perspective of overall operation in order to truly control the cost expenditure of procurement.
Communication is an important part of enterprise operation, and many companies are conducting numerous institutional and spiritual training, but most of them do not have "communication skills" training.In most factories, you will find that there is a serious distortion in the communication process between colleagues, or words that do not convey the meaning, or a hundred people are unable to explain... This phenomenon, to put it simply, makes many processes ineffective or loses many important opportunities. If you exaggerate, it may bring hidden dangers to the enterprise. This is a typical cost increase caused by poor communication.
Stagnation of resources can be said to be the most widespread "hidden cost" in enterprises, such as idle equipment, backlogged inventory, and idle business. Although they may not necessarily continue to consume the company's investment, they are a part of the company's assets, and the company will bear hidden costs such as interest for this. So, the amount of stagnant resources in a company reflects the level of resource utilization.
Some people say that corporate culture is like the soul of a company, and it willitsThis is reflected in the spiritual outlook of each member. However, many people may not agree that corporate culture will become a cost, but the fact is that it is. We will find that some factory employees are listless and have extremely low work efficiency. No matter how excellent the employees are, once they enter, they will either leave soon or become like that. We cannot ignore that this is an "environmental" problem. And this' environment 'is precisely the corporate culture of this enterprise. Corporate culture is like the life of a company, accompanying it throughout its entire existence and can only be adjusted, not remade.
This is a cost that involves long-term returns, and operating with integrity is like being an honest person. We have found that many factories are accustomed to owing supplier payments, employee salaries, bank loans, and so on, believing that this can alleviate the pressure on the company's working capital.However, in the long run, this will become a serious hidden cost for business operations: firstly, suppliers will definitely include time costs in their quotations, and such enterprises cannot purchase raw materials or services at the lowest price. Secondly, employee salary arrears and violation of labor laws and regulations pose a risk of punishment. And defaulting on bank loans will greatly reduce its credit rating, and when a company encounters difficulties one day, it will be surrounded by enemies. Undoubtedly, the factory will have to pay a heavy price for this, but in fact, it has not gained any benefits from it.
Pushing the enterprise onto the fast lane is the dream of every entrepreneur. But the risk coefficient also increases synchronously as a result. Especially for large and medium-sized factories, although they have developed rapidly and have abundant income, once a crisis occurs, it will be catastrophic.Multiple cases have proven that many risks in enterprises are caused by insufficient anticipation or poor management, and hidden dangers have already been planted before the risks occur. Many large or well-known enterprises have disappeared due to a single risk. It can be seen that risk is a crucial hidden cost. However, this phenomenon is not obvious, it is simply a case of 'not making a sound, making a sound that is shocking'.
Entrepreneurial cost "refers to the cost that the owner of a business brings to the enterprise. Entrepreneurs are like the leaders of an army, and they themselves are the employees who pay the highest costs to the enterprise. The bosses of many private enterprises have turned themselves into the "emperor" of the enterprise. They have the final say, and all the employees have become the execution machine. However, the personal shortcomings of entrepreneurs will add a heavy cost burden to the enterprise.This phenomenon is mainly reflected in small enterprises, but it also exists in large enterprises. We can extend this cost to every department and even every employee of the enterprise. Because everyone is responsible for their own work, we often emphasize that within your scope, you are the leader and have the authority to make decisions. And many leaders have always been self-centered, which greatly reduces the team's combat capability and increases high hidden costs. I remember once saying a sentence to a boss who complained about the lack of talent in the company: 'What your company lacks is not talent, but the wisdom to discover and make good use of talent.'.
As can be seen from the above, factories often have to bear a lot of burdens in their management, and hidden costs are the heaviest burden among them. Discovering and effectively reducing the hidden costs mentioned above may be a powerful measure for factory progress, which is also the real problem of many factories.
Source: Micro Cloud Internet Technology
