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Cost reduction

Way of thinking

★ What is the cost used for? It is "used to solve the problem". If this is the basis and the purpose is unclear, there is no need to use the cost.

★ When using costs, it is necessary to set the expected results concretely numerically and check whether the expected results were obtained by using the costs, and the results will not exceed the used costs. It cannot be said that the "problem" has been solved.

★ For example, if you spend money on hiring a part-time job because there are not enough people, advertising because sales are poor, etc., hire a number of part-time workers to complete the work in days, advertise millions of yen Originally, we had to set a goal of increasing sales by hundreds of millions of yen in advance, and after the end, we had to verify whether the set results were achieved.

★ However, it is often the case that you spend the cost without setting a goal, or you set a goal but end it without verification, but these common points are to use the cost. That is the purpose, and it is forgotten to say that the original purpose is to "solve the problem".

★ Also, since I used the cost last year, I have a track record of using it this year as well, so people tend to accept it without much complaints, but it is different whether or not the problem can be solved by that.

★ The corporate environment these days is changing so rapidly that the same thing rarely happens every year, and just because it was effective the previous year does not mean that the same effect will be obtained this year. It is necessary to always confirm "what is the problem to be solved" without being bound by past achievements, and if the purpose of use of the cost used habitually and inertially is clarified, the effectiveness of the cost will be improved. It turns out.

 


★ office-doi copyright2013 kazuo.doi All rights reserved

大理石の表面

★ Any company is required to meet the expectations of its stakeholders (shareholders, customers, employees, business partners, local communities / society) through its corporate activities, and profits are the source of that.

 

★ As expressed by [Profit = Sales-Cost], profit is determined by how much the difference between sales and cost can be widened, so in order to make profit, increase sales as much as possible and reduce costs as much as possible. Is necessary.

 

★ Even if either sales management or cost management is neglected, management will not work well, so it is always necessary to think about increasing sales and reducing costs in an integrated manner.

 

★ However, in general, each company has an image of "offensive" to increase sales, but since there is a strong image of "defense" to reduce costs, only passive efforts are being made, and this will reduce costs. Even if you go, you can't expect any results, just a cautious "challenging" of fire.

 

★ The cause is that there are few people in the company who are familiar with costs, so the value of cost reduction is unknown or has no value. You can only demonstrate it and realize its value.

★ In the department store where I worked for a while, the method of making the management aware of the value of cost reduction is a crisis situation where the business performance deteriorates and the budget can not be done with this, but there is no measure from the sales side and it is said that it will be abandoned. At that time, we proposed and implemented a drastic cost reduction measure, which was shown in the "result" of "budget achievement."

 

★ In this way, "cost reduction" is relied on "when the budget cannot be made", and for that purpose, always keep an eye on the progress of the budget from the point of "creating a budget" and reduce the shortage cost. It is necessary to prepare so that it can be covered by, and even if it is an amount of 100 million units, it is meaningless if you do it thoroughly when you have to do it and produce results.

 

★ It is necessary to change the mindset of the person in charge in order to continuously carry out "cost reduction" without finishing it only once, and the person in charge related to cost such as personnel, accounting, general affairs, etc. is simply "maintaining and continuing" the work. It is necessary to make people strongly aware that the mission is "quality improvement" and "cost reduction" of business.

★ There is a limit to how much profit can be generated to achieve the budget by making efforts without changing the current situation, and it is necessary to review how to use costs on a zero basis and reform the cost structure.

★ When re-washing, it is related to cost, such as "Is it okay if there are rules but it is not followed?" "Is it okay if they are executed so separately?" "Is it okay to order at this price?" We will not be bound by the customs and shigarami of the past, but will compose only the elements necessary to achieve the goal and link it to the results.

★ In "cost reduction", it is necessary to have a "reform" idea that drastically reviews the values, and without being satisfied with the current situation, always "make the combination that can maximize the results", that is, "cost". With the aim of "optimizing the structure," I believe that we will continue to change our values ​​indefinitely.

★ What is the cost used for? It is basically "used to solve problems".

★ When using the cost, it is necessary to set the expected effect concretely numerically and check whether the expected effect was obtained by using the cost, and the result does not exceed the used cost. It cannot be said that the "problem" has been solved.

★ For example, if you spend money on hiring a part-time job because there are not enough people, advertising because sales are poor, etc., hire a number of part-time workers to complete the work in days, advertise millions of yen Originally, we had to set a goal of increasing sales by hundreds of millions of yen in advance, and after the end, we had to verify whether the set effect was obtained.

★ However, it is often the case that you have used the cost without setting a goal, or you have set a goal but ended up without verification, but these are for the purpose of using the cost. The main reason is that we forget the purpose of solving the problem.

★ This is also common, but since I used it last year, I will use it this year as well, but since I have a track record of using costs, people around me do not complain so much, but whether it can solve the problem or not Is different.

★ The corporate environment these days is changing so rapidly that the same thing rarely happens every year, and just because it was effective the previous year does not mean that the same effect will be obtained this year. It is necessary to always confirm "what is the problem to be solved" without being bound by past achievements, and it is meaningless to clarify the purpose of use of costs that are habitually and inertially used in this way. The cost is known.

                   

★ office-doi copyright2013 kazuo.doi All rights reserved

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