We all know that if we want textile companies to establish a foothold in the industry, they must be competitive. So where does competitiveness come from? We must consider the issue of costs in all aspects of production operations. There are some costs we can budget, and some hidden costs are invisible but extremely lethal. It may slow down your textile factory. Xiao Bian today brings you hidden costs in the textile industry. Let's analyze it together.
1. Talent flow cost
There are many factories that are lacking in human resources management. They think that the talented people are unlimited and become "iron-plated camps." Naturally, employees have become the "arms of the water."
It must be said that the departure of a factory technician is a considerable cost to the company. Because the company has to bear the up-front costs of recruiting new employees in this position and also bear the risk of the new employees being suitable for the position, the new employees have also experienced a running-in period to adapt to the factory's process. The departure of an important employee may result in the loss of important internal data or information. After he leaves the company, he is likely to enter his own competitor's company. Therefore, the loss of employees, especially old employees, will undoubtedly bring the company several times more than its income.
After many small factories have been in business for many years, you have discovered that they have always been such a small team, and no one other than the boss has stayed from the beginning of the establishment of the company. I think this may be an important reason why it cannot develop.
2. Overtime cost Overtime cost
Many employers always think that it is a professional phenomenon that employees “overtime work†after work. As everyone knows, this may imply very high costs. There are three reasons:
First, the reason for overtime is not necessarily because the task is too heavy, but because the work efficiency of employees is low. Overtime means low efficiency. If the objective task is really heavy, then the company should replenish new personnel and positions in time to be truly development and progress.
Secondly, overtime requires more staff energy and physical strength, and seriously overstretch the health of employees. In the long run, some important employees will not be able to exert their performance for a long time, and there will be hidden risks for the company. For example, some mechanical operators Long hours of overtime lead to mental disorders and accidents, and companies have to pay a heavy price for this.
Thirdly, overtime employees are not necessarily “respectful to workâ€. Some employees are known as overtime when they are off work. They use the company’s resources to engage in their personal affairs. They also receive the company’s overtime pay. Many companies’ losses and lost data are important. All of this happened during off hours, and overtime became a corner of the company's "filth."
3, manufacturing process costs
There is too much chaos in the factory because of processes. This is a common problem in business management. The processes of slow-moving companies must be confusing or unreasonable. They have to bear high costs for this, but they have always turned a blind eye.
The process is the industrial chain in which the company operates. Like the assembly line, there is no scientific and rational manufacturing process. It also loses systematic control over all processes. Many jobs are abandoned halfway, and many jobs need to be reworked. But have to admit that this will become a mess that wraps the factory forward.
4. Conference cost
The operation of the factory is nothing more than a race against time. The conference is a collective activity of the factory to solve problems and issue directives, but it is also a high-cost business activity.
Because this activity is often a collective activity in which many leaders participate. Each minute means the number of minutes for the total number of participants, and many corporate executives do not have the skills to hold meetings. There are “no preparations before the meeting, no topics at the meeting, no implementation after the meeting, and no need for attendance. There is no control and there are no phenomena in speeches.
5. Post dislocation cost
In human resources management there is a famous saying "put the right person in the right place."
Some factories arrange technicians to spend a lot of time every day to mop the floor, clean the sanitation, and dye the tank setting machine. Some leaders also take the lead to participate in it. It looks like a good thing. I can't help but sigh. This factory is engaged in printing and dyeing. How can it cost so much to hire unprofessional cleaners?
In fact, this shows that the bosses have a very clear mentality. They think that the recruitment of these employees is to use them. If they can do it by themselves, they do not need to spend more money. However, we found that they paid a high price.
6. Purchasing cost
Purchasing has different ways in different companies, but this is an important part of the costs that affect the operation of the factory. We often only focus this cost on the price and quantity of procurement, and it is difficult to see other factors besides.
Once there was a branch of a printing and dyeing company, when it was doing a new project, the daily operating cost was 80,000 yuan. However, on the eve of its listing, the purchasing department spent a week in order to purchase more than 100,000 yuan of supplies. It is to find low-cost suppliers to save purchase costs. The entire marketing team therefore waited more than a week to sign the contract with the customer.
This phenomenon actually exists in many companies. The blind pursuit of reducing the direct cost of procurement and ignoring the simultaneous existence of "invisible costs." Of course, there is no conflict between reducing the direct cost of procurement and this article. Here, we must say that the procurement department of an enterprise must comprehensively balance the various indicators from the perspective of overall operations in order to truly control the cost of procurement.
7. Communication cost
In today's economically turbulent environment, the operating pace of factories has also become faster and faster, but everything has a certain limit, and the fast-paced operation has brought a lot of trouble to companies. Communication is an important part of business operations. Many companies are doing a lot of system training and spiritual training, but most of them do not have "communication skills" training.
In most factories, you will find that in the process of communication between colleagues, there will be serious distortions, or words inadvertently, or unanswered questions, or hundreds of people to explain. This phenomenon, that small, so many processes Become an invalid process or lose a lot of important opportunities. If you say something big, it may cause hidden trouble for the company. This is a typical cost increase due to bad communication.
8. Stagnant resource cost
Stagnant resources can be said to be the most widespread “implicit†in the enterprise, such as idle equipment, backlogs of inventory, low-utilization job occupations, idle funds, and shelved businesses. Although they will not necessarily continue to consume the input of enterprises, they are part of the assets of enterprises and companies will bear the implicit cost of interest.
Therefore, in a company, the number of stagnant resources reflects the level of utilization of corporate resources.
9. Corporate culture cost
Some people say that corporate culture is like the soul of a business and it is reflected in the spiritual outlook of each of its members. This culture was established at the initial stage of the establishment of the company. He was influenced by the company's founders' culture, habits, skills, occupations, likes and dislikes. Therefore, it was said that corporate culture is the boss culture.
But to say that corporate culture will become a cost, perhaps many people disagree, but it is. We will find that the employees of some factories are apathetic and have extremely low efficiency. No matter how excellent the employees are, as long as they enter, they will soon leave or they will become so. We cannot but say that this is an "environmental" problem. And this "environment" is exactly the corporate culture of this company.
Corporate culture is like the life of a business. It can be accompanied by the life of a business. It can only be adjusted and cannot be rebuilt.
10. Credit cost
This is a cost that involves long-term return. Honest business is like honest people. We have found that many printing and dyeing factories are accustomed to defaulting on suppliers’ payment, are accustomed to defaulting on employees’ salaries, are accustomed to deducting others, are accustomed to defaulting on bank loans, etc., and believe that this can ease the pressure on companies’ liquidity.
However, in the long run, this will become a serious hidden cost of business operations:
First of all, suppliers must count the time cost in their quotes. Such companies cannot purchase the lowest price raw materials or services. Second, employees’ salary is in default and violates labor laws and there is a danger of being punished.
The default on bank loans and the deduction of others will greatly reduce their credibility. When a company encounters difficulties on a particular day, it will be embattled. Undoubtedly, the factory has to pay a heavy price for this, but in fact it does not benefit from it.
11, Risk Cost Risk cost
It is every entrepreneur’s dream to push the company to the fast lane. However, the risk factor also increases simultaneously. In particular, large and medium-sized factories, although they have developed rapidly and are rich in income, they will be catastrophic in the event of a crisis.
A number of cases have proved that many of the company's risks are caused by inadequate or poor management. Before the occurrence of the risk, all risks are buried. Many large companies or well-known companies die out because of one risk. Visible, risk is a significant hidden cost. However, this phenomenon is not obvious. It is really "it is not a whisper, it is a blockbuster."
12. Entrepreneur cost
“Entrepreneurial cost†refers to the cost that the owner of the company brings to the company. There is a good sentence, one bear and one bear. Entrepreneurs are like the heads of an army. They themselves are the employees who pay the highest costs. The bosses of many private enterprises have turned themselves into the “emperors†of the company. All of them have the final say, and all employees have become the implementers. However, the lack of entrepreneurial personal factors will add a heavy cost burden to the company.
This phenomenon is mainly reflected in small-scale enterprises, but there are also such phenomena in large-scale enterprises. We can also extend this cost to every department and even every employee in the company. Because everyone is responsible for their own work, we often emphasize that in your area, you are the leader, and you have the right to make decisions.
Many leaders have always been centered on themselves. This will greatly reduce the team's combat capabilities and increase the high hidden costs. I remember once saying to a boss who complained about the company’s lack of talent: “What your company lacks is not talent, but the wisdom of finding and using talent.â€
Xiao Bian to give you a list of so many hidden costs is not very useful? In fact, in the textile industry, as long as the cost of every aspect of the company's competitiveness is gradually consolidated.
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