Ways to reduce the cost of production

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Economic crises always entail serious consequences, not only for businesses but also consumers themselves, because it is the level of purchasing power depends on the number of products.In connection with the transition to a market economy, an important condition for the survival of the enterprise is the ability to properly and efficiently organize their production.To achieve high performance is unlikely without the control of the cost of production and sales.Determination of reserves to reduce the cost of production played in all of this important role.

magnitude cost reflects not only the costs associated with the creation and implementation of enterprise products and services.It has an impact on what will be the final result of the enterprise.Currently, there are a variety of ways to reduce production costs.This includes the improvement of the production process, replacing expensive materials with cheaper analogues, automation of jobs, reducing the number of workers, mutually beneficial cooperation with other companies that can produce at lower prices or that the component parts.

Ways to reduce the cost of production and relate to the introduction of new, more modern technology, automation of industrial processes, the introduction of comprehensive mechanization, introduction of progressive kinds of materials, improvement of technology.Through this method it can significantly reduce the cost of production.Lowering the cost of production can be achieved and by increasing productivity.In the case when productivity actually increased, a decline in labor costs per unit of output.Consequently, it decreases and the share of wages.

considering ways to reduce the cost of production, it should be noted, and this reserve as adherence savings throughout the enterprise.Save Mode will be manifested in a decrease in the cost of material resources, reducing the maintenance costs of production and its management, the elimination of losses arising due to various non-productive expenditure.As is well known, a large share of the cost of production take material costs of production, so even if saving raw materials, fuel, energy and materials will be insignificant, the company will feel visible effect.To achieve lower costs for raw materials can be achieved by improving product design, improvement of production technology, the introduction of the standard cost of material assets, the use of advanced types of raw materials.

Thus, factors reducing production costs can be divided as follows:

· Increasing the technical level of production - the use of advanced technology and equipment, the introduction of non-waste technology.

· Changes in the structure and volume of production.

· Improvement of the organization of management, production and labor - skills development, compliance with the optimal batch size of the purchased products, better service workplace, implementation of budgeting and management accounting.

analyzing ways to reduce production costs, it can be concluded that the introduction of resource-saving technologies - it is sufficient for an effective course of manufacturers.Therefore, the introduction of advanced equipment in the manufacture and commissioning of rational methods of manufacturing products will reduce costs and generate additional income.