Twelve hidden costs of plastic mold manufacturing companies

Twelve hidden costs of plastic mold manufacturing companies

Small and medium-sized enterprises in the plastic mold industry will encounter development bottlenecks in a certain period of time. Operating costs have been rising, but it is difficult to find the “location” of the cost. We call this “hidden cost”.This article summarizes the various “hidden costs” of enterprises, which can be used for self-inspection.

1. Conference cost

The management of mold companies is nothing more than a race against time.The meeting is a collective activity for mold companies to solve problems and issue instructions, but it is also a high-cost business activity.And many managers of plastic mold companies have not mastered the meeting skills, there are “no preparation before the meeting, no theme during the meeting, no implementation after the meeting, no need to attend the meeting, no time control, and no bounds to speak”.

2. Purchase cost

There used to be a two-color plastic mold company. When doing a new project, the daily operating cost of the project team was 8 yuan, but on the eve of the product launch, the purchasing department actually spent a week in order to purchase more than 10 yuan of two-color materials. , The reason is to find low-priced suppliers to save procurement costs.As a result, the entire marketing team could not complete the contract fulfillment delivery date after waiting one more week.

3. Communication costs

In most mold companies, you will find that there will be serious distortions in the communication process between colleagues, or the words are not satisfactory, or the answers are not answered, or the people are confused… This kind of phenomenon, if it is too small, makes a lot of The process becomes ineffective, or many important opportunities are lost.If it is too big, it may cause hidden dangers to the enterprise.This is a typical cost increase caused by poor communication.

4. Overtime cost

In the mold industry, many bosses always believe that it is a phenomenon of dedication for employees to “work overtime” after work.As everyone knows, this may imply a high cost.

The reason for working overtime is not necessarily because the work tasks are too heavy, it may be caused by the low efficiency of the employees.If the objective task is really heavy, then the company should add new personnel and positions in a timely manner to achieve real development and progress.

Overtime work consumes more energy and physical strength of employees and seriously overdrafts employees’ health. In the long run, some important employees will not be able to perform their performance for a long time, and it will bring hidden dangers to the company. For example, some mechanical operators work overtime for a long time. This leads to mental disorders and accidents, and companies have to pay a heavy price for this.

5. The cost of talent flow

The loss of employees, especially old employees, will undoubtedly bring expenditures that are several times higher than their income for mold companies.After many small mold companies have been in business for many years, you find that they have always been such a small team, and apart from the boss, none of the employees stayed from the beginning of the establishment of the company. This may be an important reason for its failure to develop.

6. Cost of job dislocation

There is a famous saying in human resource management “put the right people in the right place”.Unfortunately, there are really not many companies that can do this.

7. Process cost

Too many chaos in the enterprise is due to the process, which is a common problem in the management of mold companies. For companies with slow development, the process must be chaotic or unreasonable.They bear a high cost for this, but they have always turned a blind eye.

8. The cost of stagnant resources

Stagnant resources can be said to be the most extensive “hidden costs” in plastic mold companies, such as idle equipment, overstocked inventory, low-utilization jobs, idle funds, and idle businesses.Although they may not continue to consume the investment of plastic mold companies, they are part of the assets of plastic mold companies, and the company will bear hidden costs such as interest.

9. Mold corporate culture cost

Many people may disagree that mold corporate culture will become a cost, but it is true.We will find that the employees of some mold companies are sluggish and extremely inefficient. No matter how good employees are, they will either leave or become like that soon after entering. We have to say that this is an “environmental” issue.And this “environment” is exactly the corporate culture of this company.

10. Credit cost

We have found that many large and small mold companies are accustomed to defaulting on payment from suppliers, defaulting on employee salaries, accustomed to deducting others, accustomed to defaulting on bank loans, etc., thinking that this can reduce the pressure on corporate liquidity.But in the long run, this will become a serious hidden cost of business operations.

11. Risk cost

It is the dream of every mold entrepreneur to push the mold enterprise into the fast lane.However, the risk factor has also increased accordingly.Especially large and medium-sized plastic mold companies, although they are developing rapidly and earning a lot of money, once a crisis occurs, it will be catastrophic.

12. Costs of mold entrepreneurs

There is a saying that goes well, (a raging soldier; a raging nest).Mold entrepreneurs are like the leader of an army, and they themselves are the most expensive employees of mold companies.The bosses of many private enterprises have turned themselves into the “emperor” of mold companies. Everything is in charge, and all employees have become execution machines.However, the shortcomings of the entrepreneur’s personal factors will add a heavy cost burden to the enterprise.

It can be seen from the above that plastic mold companies often have to shoulder a lot of burdens in their operation and management. Discovering and effectively reducing the above hidden costs may be a powerful measure for mold companies to progress.

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