QUALITY IMPROVEMENT PRODUCT AND CUTTING PRICE OF PRODUCTION COSTS ACCORDING TO SOME REFFERENCES TO SUGGEST
In the article (A Few Conceptual Of Management Effectively By Some Different Standpoint), it was issued at 2016. While I was during mentioned to improve quality and cutting prices of product to compete.
Almost everyone thinks the matter to my mention is unreasonable.
The present in time, I realized that there are some domestic consumer products has cut a few quality standards to compete (I am eliminate to any export products). I don’t thing almost domestic manufactures and services are manage and development in this direction.
The previous article has an overall content of management effectively. Consequently, I did not delve out the matters of price and quality.
After a lot of to consider this the matters.
I'm suggest to some feasible options to increase product quality, concurrently to lower producing cost.
Firstly, I want to mention the issue of product quality.
Of course, I do not to discuss to any new investment. Be course of any large capital to borrow or to mobilize it's a high risk for more.
- A priority in this option is an innovation and quality improvement from the department internal of Business.
We can be able to encourage some foremen, technical staffs and some high skill experiences worker to join the research group to work from overtime.
Of course, businesses should be pay of a income to encourage to theirs intellectually for the research of Business to ask.
The matter mentioned-above will be reduced costs more than borrowing.
- Another option is to contract of research to the matters with a some universities for a reasonable fees (Taiwan-China has been successful this model effectively).
Businesses should be able to establish the fund of innovation and improving quality from annual profit theirs.
The next mention is cutting prices of producing. The priority is in building competitive prices.
- First of all, we discuss to the issue of labor productivity:
In theory, the more labor productivity increases to impact of the production costs to decrease.
The problem here is, how to encourage workers directly to increase productivity, while still maintaining quality standards of products.
For the surplus of output due to increase labor productivity.
I will be proposed to reward to workers from 20 to 25 percent on the production line.
The remaining 75 to 80 percent of the difference due to increase productivity is use to reduce production costs.
- The second issue I want to mention is encouraging production workers to save raw material norms.
Because, in the norm is always to allow of loss rate depending on each type of product.
I also recommend giving a direct bonus to workers of 15 to 20 percent of this savings value. And the remaining value due to saving raw materials is also a factor in reducing product costs.
I think most business can be usual to ignore these two items I mentioned-above.
The product costing department must link with some relevant departments and submit it to superior leaders to decide.
Finally, if you want to maintain and developing your business.
I would like to seriously consider two issues of product quality and production cost.
Every Business knows that respect for consumers will be to bring for a long-term benefits.
To solve the problem of product quality in the direction of stimulating consumers to demand.
I recommend all manager should be to leave theirs desk to go down to some dealers and stores to listen to consumers feedback from distribution channels.
