What are the "hidden costs" of Dongguan Plastic Mold Factory?

Dongguan Plastic Mold Factory's competitiveness, especially for small and medium-sized mold enterprises and developing mold enterprises, they always encounter development bottlenecks during a certain period of time. They always feel that the operating costs have been rising, but it is difficult to find the "location" of the costs, which we call "hidden costs". This is like a disease hidden in life, which cannot be cured for a long time and has become a driving force for Dongguan Plastic Mold Factory operators to frown.

1. Cost of mold talent turnover

Many Dongguan plastic mold factory enterprises lack human resource management. They believe that talent is infinite and become a "iron camp", and employees naturally become the "flowing soldiers".

It cannot be said that the departure of a technician from a Dongguan plastic mold factory is a significant cost for the company. Because the company has to bear the initial cost of recruiting new employees for this position, as well as the risk of whether the new employees are suitable for the position, they have also gone through a period of adjustment before adapting to the factory's process. The departure of important senior employees may result in the loss of important internal data or information, and after their departure, they are likely to enter their competitors' enterprises.

So, the loss of employees, especially veteran employees, will undoubtedly bring expenses several times higher than the company's income. After many years of operation, many small mold enterprises have always had such small teams, and apart from the boss, no employee has been left behind since the establishment of the enterprise. I think this may be an important reason why it cannot develop.

2. Overtime costs

Many bosses always believe that it is a professional phenomenon for employees to "sleep and forget to eat" and "work overtime" after work. Little did they know that this may imply high costs. There are three reasons:

Firstly, the reason for overtime is not necessarily due to the heavy workload, but rather the low efficiency of employees, as overtime means low efficiency. If the objective work task is indeed heavy, then the enterprise should timely supplement new personnel and positions to truly develop and progress.

Secondly, overtime consumes more employees' energy and physical strength, seriously overdrawing their health. In the long run, it will prevent some important employees from achieving their long-term effectiveness, and there is a hidden danger of burden for the company. For example, some mechanical operators may experience mental disorders and accidents due to prolonged overtime, and the company will have to pay a heavy price for this.

Thirdly, overtime employees may not necessarily be "responsible for their work". Some employees use the company's resources to engage in their personal affairs and also receive overtime pay from the company in their spare time. Many important losses and data losses of enterprises occur during off hours, and overtime has become a blind spot for enterprises to "hide dirt and engage in corruption".

3. Manufacturing process cost

Too much of the chaos in mold enterprises is due to processes, which is a common problem in enterprise management. Any enterprise that develops slowly must have chaotic or unreasonable processes. They bear a high cost for this, but they have always turned a blind eye.

Process is the industrial chain of enterprise operation, just like assembly lines. Without a scientific and reasonable mold manufacturing process, there is a loss of systematic control over various processes. Many tasks are abandoned halfway, and there is still a lot of work that needs to be reworked, which is rare. But it has to be admitted that this will become a tangle that will wrap around the progress of mold enterprises.

4. Meeting costs

The operation of mold enterprises is nothing more than a process of racing against time. The meeting is a collective activity for mold enterprises to solve problems and issue instructions, but it is also a high-cost business activity.

Because this activity is often a collective activity involving many leaders. Every minute means the total number of minutes of attendees, and many management personnel in enterprises do not master the skills of meetings. There is a phenomenon of "no preparation before the meeting, no theme during the meeting, no execution after the meeting, unnecessary attendance, uncontrollable time, and endless speech".

5. Job dislocation cost

There is a famous saying in human resource management, 'Put the right people in the right place'.

Some mold factories arrange technicians to spend a lot of time every day mopping, cleaning, and cleaning machine tools. Some leaders also take the lead in participating, which seems to be a good thing. I can't help but sigh, this mold enterprise is engaged in mold manufacturing, how could it spend such a high salary to hire unprofessional cleaners.

In fact, this reflects a very clear mentality among bosses, who believe that these employees are recruited to use, as long as they have someone to do it, they don't have to spend more money on it. But we found that they paid a high price for it.

6. Procurement cost

There are different ways of procurement in different companies, but this is an important cost component that affects the operation of mold enterprises. We often only focus on the price and quantity of procurement, and it is difficult to see other factors besides this.

There used to be a product branch of a mold enterprise. When working on a new project, the project team had a daily operating cost of 80000 yuan. However, on the eve of the product launch, the procurement department spent a week purchasing packaging for over 100000 yuan, citing the need to find a low-priced supplier to save procurement costs. The entire marketing team was unable to sign a contract with the customer due to an extra week of waiting.

And this phenomenon actually exists in many enterprises. Blindly pursuing the reduction of direct procurement costs while neglecting the coexisting "hidden costs". Of course, reducing the direct cost of procurement does not conflict with this article. Here, what we want to say is that the procurement department of the enterprise must comprehensively weigh various indicators from the perspective of overall operation in order to truly control the cost expenditure of procurement.

7. Communication costs

In today's turbulent economic environment, the operating pace of mold enterprises is also becoming increasingly fast, but everything has a certain limit. The fast-paced operation has also brought numerous troubles to the enterprise. Communication is an important aspect of enterprise operation. Many enterprises are providing numerous institutional and spiritual training, but most do not have "communication skills" training.

In most mold companies, you will find that in the communication process between colleagues, there is a serious distortion phenomenon, such as unclear words, incorrect answers, or a hundred people solving all problems... This phenomenon, to put it too small, makes many processes ineffective or loses many important opportunities. If you exaggerate, it may bring hidden dangers to the enterprise. This is a typical cost increase caused by poor communication.

8. Stagnant resource cost

Stagnant resources can be said to be the most widespread "hidden costs" in enterprises, such as idle equipment, backlog of inventory, low utilization of job positions, idle funds, suspended business, etc. Although they may not necessarily continue to consume the investment of the enterprise, they are a part of the enterprise's assets, and the enterprise will bear hidden costs such as interest for this.

So, in a company, the amount of stagnant resources reflects the level of resource utilization.

9. Cost of Mold Enterprise Culture

Some people say that corporate culture is like the soul of a company, reflected in the spiritual outlook of every member. This culture starts to be established in the early stages of the establishment of the enterprise, and is influenced by the culture, habits, skills, profession, likes and dislikes of the founder of the enterprise. Therefore, some people say that corporate culture is the culture of the boss.

But many people may not agree that corporate culture can become a cost, but this is the fact. We will find that some employees in mold companies are mentally depressed and have extremely low work efficiency. No matter how excellent they are, as long as they enter, they will either leave soon or become like that. We cannot help but say that this is an "environmental" problem. And this' environment 'is precisely the corporate culture of this enterprise.

Corporate culture, like the life of a company, will accompany it throughout its life and can only be adjusted, not rebuilt.

10. Credit cost

This is a cost that involves long-term returns, and honest management is like being an honest person. We have found that many mold companies are accustomed to defaulting on supplier payments, employee salaries, withholding payments from others, and defaulting on bank loans. We believe that this can alleviate the pressure on the company's working capital.

However, in the long run, this will become a serious hidden cost for business operations: firstly, suppliers will always include time costs in their quotations, and such enterprises cannot purchase the lowest priced raw materials or services. Secondly, employees' salary arrears, violations of labor regulations, and the risk of being punished.

Delaying bank loans and withholding from others will greatly reduce their credit rating, and when a company encounters difficulties one day, they will be on all sides. Undoubtedly, mold companies have to pay a heavy price for this, but in fact, they have not gained any benefits from it.

11. Risk cost

Pushing a company onto the fast lane is the dream of every entrepreneur. However, the risk coefficient also increases synchronously as a result. Especially for large and medium-sized mold enterprises, although they have developed rapidly and have abundant income, once a crisis occurs, it will be catastrophic.

Multiple cases have proven that many of the risks faced by enterprises are caused by insufficient anticipation or poor management, and hidden dangers are buried long before the risks occur. Many large or well-known enterprises perish due to a single risk. It can be seen that risk is a crucial hidden cost. And this phenomenon is not obvious, it is truly 'if you don't make a name for it, you will be amazed'.

12. Entrepreneurial costs

Entrepreneurial costs "refer to the costs brought to the enterprise by the boss himself. There is a saying that goes, "A soldier is a bear, a nest will be a bear." Entrepreneurs are like the leaders of an army, and they themselves are the employees who pay the highest cost for the enterprise. The bosses of many private enterprises have turned themselves into the "emperor" of the enterprise. They have the final say, and all the employees have become the execution machine. However, the flaws in the personal factors of entrepreneurs will add a heavy cost burden to the enterprise.

This phenomenon is mainly reflected in small enterprises, but it also exists in large enterprises. We can also extend this cost to every department or even every employee of the enterprise. Because everyone is responsible for their own work, we often emphasize that within your scope, you are the leader and have the authority to make decisions.

Many leaders have always been self centered, which greatly reduces the team's combat capabilities and increases 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 to discover and make good use of talent.

From the above, it can be seen that mold enterprises often bear a lot of burdens in their management, and hidden costs are the heaviest among them. Discovering and effectively reducing the hidden costs mentioned above may be a powerful measure for the progress of mold enterprises, which is also the real drawback of many mold enterprises.