Economic crises always entail serious consequences, and not only for enterprises, but also for consumers themselves, because the quantity of products depends on the level of purchasing power . In connection with the transition to market relations, an important condition for the survival of the enterprise is the ability to properly and efficiently organize its production. Achieving high performance is unlikely to succeed without cost control for production and sales. The determination of reserves to reduce the cost of production plays an important role in all this.
The value of the cost reflects not only the costs associated with the creation and sale of products and services by the enterprise. It has an impact on what will be the final result of the enterprise. Currently, there are a variety of ways to reduce the cost of production. This includes improving the production process, replacing expensive materials with cheaper analogues, automating jobs, reducing the number of workers, mutually beneficial cooperation with other enterprises that can produce certain components at lower prices.
Ways to reduce production costs relate to the introduction of new, more modern technology, automation of production processes, the introduction of complex mechanization, the introduction of progressive types of materials, and the improvement of technology. Thanks to these methods, you can significantly reduce the cost of production. Reducing the cost of production can be achieved by increasing productivity. In the case when labor productivity does increase, there is a reduction in labor costs per unit of output. Consequently, the proportion of wages is also decreasing.
Considering ways to reduce the cost of production, it should be noted and such a reserve as compliance with the economy during the entire activity of the enterprise. The saving regime will be manifested in reducing the cost of material resources, reducing the costs of servicing production and its management, eliminating losses arising from various non-productive costs. As you know, a large proportion of the cost of production is occupied by material costs of production, therefore, even if the saving of raw materials, fuel, energy and materials is insignificant, the enterprise will experience a visible effect. Achieving lower costs for raw materials can be achieved through improved product designs, improved production technologies, implementation of material costs norms, and the use of progressive types of raw materials.
Thus, factors that reduce the cost of production can be divided as follows:
· Increasing the technical level of production - the use of advanced technology and technology, the introduction of non-waste technologies.
· Changes in the structure and volume of production.
· Improving the organization of management, production and labor - improving the skills of workers, observing the optimal lot sizes of purchased products, improving workplace service, introducing budgeting and management accounting.
After analyzing ways to reduce the cost of production, we can conclude that the introduction of resource-saving technologies is a sufficient effective move for manufacturers. Consequently, the introduction of modern equipment in production and the introduction of rational methods of manufacturing products will lead to lower costs and additional income.