| Detail determines success or failure. How to decompose the enterprise’s management to every detail, getting benefit from management, getting cost from management, from energy saving emission reduction to time saving, to establish saving-type enterprise, is the key of keeping enterprise innovation ability and competitive ability.
The group company put forward the production increasing and economy practising in the first half year economic work conference. This requires every company, sub plant and department need to take its own practical situation, starting from refinement, continuously and effectively develop detail management. President Wang Liping grasps detail management by himself, listens to the opinions of administration officers, goes to the workshop to inspect, strengthens logistics management, organizes foremen to take tests and so on, also combined the practical situation of the company, puts forward cost concept of time is the cost and let the warehouse move in management, grasps the company’s cost management.
President mainly advocates the management concept of time is also the cost. He regards things like actions of complying in public while opposing in private as the utmost waste of time and efficiency, also is the utmost waste of the company’s management cost. When we refer to the cost, many people usually only think of raw material cost, labor cost, production cost and so on, but often neglect time cost. This is one of the important resource that often be neglected, but can’t be reused and permeate to every link of enterprise management. To strengthen cost management, we not only strengthen capital flow, logistics, rational arrangement of talent and collaborative management, but need to compress time as a brand-new cost concept, implementating to every link of Guangbo management in new competition era.
We always say that stock is enterprise’s most serious threat. But in fact, stock is not the remote distance from products to the customer, but the waiting time from products to the customer. Therefore, president asks the company to strengthen effective management of the stock on whole management. Shortening the waiting time from products to the customer means time cost compression. For example, on operating cost of the airlines, paying the cost of airport and providing ground service accounts for 30% to 40% of the operating cost of the airlines. So reducing the airlines’ airport ground cost becomes the first choice of reducing the airlines’ total cost.
Similarly, for the typical production and manufacture type enterprise, “Inner production is the cost. External marketing is the benefit.” While stock is the main factor in total product cost. Strengthening effective management on stock and shortening the time of the stock is a kind of utmost cost saving.
In fact, the time when a product reaches the customer, will be several days even a month. Shortening one day even one hour, it is no longer the plain concept of expense cost, but become the powerful weapon for enterprise in market competiton. We all know, Walmart’s commercial competition slogan is every day low price. Then, how to realize the commitment of every day low price? Person in analyzing the operating structure of Walmart finds that time cost determines product price, thus make Walmart every day low price become the reality.
Manufacturing enterprise should be so. Shortening purchasing material stock, manufacturing product stock, the usage rate of effective equipment and reasonable human distribution mechanism, all of these compress time cost directly and indirectly, causing Guangbo enterprise continuous development in new competiton era and prominent powerful weapon.
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