12 hidden costs are the key factors to reduce mold enterprises

Competitiveness, especially small and medium-sized mold enterprises and developing mold enterprises, always encounter development bottlenecks in a certain period, always feel that the cost of operation has been rising, but it is difficult to find the “location” of the cost, which we call “hidden cost”. This is like a disease hidden in life. If it is not cured for a long time, it will linger. It has become a thrust for mold operators to frown.

If these “hidden costs” can be found, it is undoubtedly like finding “pathogens”, then the next step of “matching the remedy to the case” must be the time to take off again. If a variety of “hidden costs” that enterprises often have can be summarized, enterprises can conduct comparative self-examination. Today, are you still “invisible”?
1. Mold talent flow cost
Many mold enterprises are very short of human resource management. They think that talents are limitless. If they become “iron camps”, employees will naturally become “flowing soldiers”.
It can’t be said that the departure of a mold technician is a lot of cost to the company. Because the company has to bear the initial cost of recruiting new employees for the position and the risk of whether the new employees are suitable for the position, the new employees also go through a run in period before they adapt to the factory process. Important old employees may lose important internal data or information due to their resignation, and they are likely to enter their competitors’ enterprises after their resignation.
Therefore, the loss of employees, especially old employees, will undoubtedly bring the enterprise expenditure several times higher than its income. After many years of operation, many small mold enterprises will find that they have always been such a small team, and apart from the boss, no employee has been left from the beginning of the establishment of the enterprise. I think this may be an important reason for its failure to develop.
2. Overtime cost
Many bosses always think that it is a professional phenomenon for employees to “work overtime” after work. Unexpectedly, this may imply a high cost. There are three reasons:
First, the reason for working overtime is not necessarily that the work task is too heavy, but that employees’ work efficiency is low. Working overtime means low efficiency. If the objective work task is really heavy, then the enterprise should supplement new personnel and posts in time to achieve real development and progress.
Second, overtime consumes more employees’ energy and physical strength, seriously overdrafts employees’ health, and in the long run, some important employees will not be able to give full play to their efficiency for a long time, and there are hidden dangers that will bring burdens to the company. For example, some machinery operators will be mentally disordered and cause accidents because of working overtime for a long time, and the enterprise will pay a heavy price for this.
Third, overtime employees are not necessarily “business oriented”. Some employees take advantage of the company’s resources to engage in their personal affairs and receive overtime pay from the company after work. Many important losses and data losses of enterprises occur during off-duty hours, and overtime has become a blind spot for enterprises to “hide dirt”.

3. Manufacturing process cost
Too many of the chaos in mold enterprises is due to the process, which is a common problem in enterprise management. Any enterprise with slow development must have a chaotic or unreasonable process. They bear a high cost for this, but they have always turned a blind eye to it.
Process is the industrial chain of enterprise operation, just like assembly line. Without scientific and reasonable mold manufacturing process, systematic control over various processes will be lost. Many jobs will be abandoned halfway, and many jobs need to be reworked. It is not uncommon. However, we have to admit that this will become a tangle that will wrap up the feet of mold enterprises.
4. Conference costs
The operation of mold enterprises is nothing more than a race 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 participated by many leaders. Every minute means the number of minutes of the total number of participants. However, managers of many enterprises have not mastered the skills of meeting, and there is a six NOEs phenomenon of “no preparation before the meeting, no theme during the meeting, no implementation after the meeting, no necessity for attending the meeting, no control over time, and no limit to speech”.
5. Post dislocation cost
There is a famous saying in human resource management, “put the right people in the right position”.
Some mold factories arrange technicians to spend a lot of time mopping the floor, cleaning and cleaning the machine tools every day, and some leaders even take the lead to participate. It seems to be a good thing. I can’t help sighing, this mold enterprise is engaged in mold manufacturing, how can it spend so high wages to hire unprofessional cleaners.
In fact, this reflects a very clear psychology of the bosses. They think that these employees are recruited for use. As long as they have manpower to do it, they don’t need to spend more money to do it. But we found that they paid a high price for it.
6. Procurement cost
There are different ways of purchasing in different companies, but this is an important cost part that affects the operation of mold enterprises. We often only focus on the price and quantity of the purchase, and it is difficult to see other factors.
There was once a product branch of a mold enterprise. When it was working on a new project, the project team’s daily operating cost was 80000 yuan. However, on the eve of the launch of the product, the procurement department spent a week in order to purchase more than 100000 yuan of packaging. The reason was to find a supplier with low prices to save procurement costs. As a result, the entire marketing team could not sign a contract with the customer for another week.
This phenomenon exists in many enterprises. Blindly seeking to reduce the direct cost of procurement while ignoring the coexisting “hidden cost”. 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 an enterprise must comprehensively weigh various indicators from the perspective of overall operation in order to really control the cost of procurement.
7. Communication cost
In today’s turbulent economic environment, the business rhythm of mold enterprises has become faster and faster, but everything has a certain limit. The fast-paced operation has also brought many troubles to enterprises. Communication is an important part of enterprise operation. Many enterprises are doing a lot of institutional training and spiritual training, but most of them do not have “communication ability” training.
In most mold enterprises, you will find that in the process of communication between colleagues, there will be serious distortion, or words fail to reach their meaning, or answers are not what they asked, or a hundred people have a hundred answers… This phenomenon is too small, making many processes ineffective or losing many important opportunities. If it is too big, it may bring hidden dangers to enterprises. 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, overstocked inventory, low utilization jobs, idle funds, shelved businesses, etc. Although they may not continue to consume the investment of the enterprise, they are part of the assets of the enterprise, and the enterprise will bear hidden costs such as interest.
Therefore, the amount of stagnant resources in an enterprise reflects the level of resource utilization of the enterprise.
9. Mold enterprise culture cost
Some people say that corporate culture, like the soul of an enterprise, will be reflected in the spirit of every member. This kind of culture has been established in the early stage of the establishment of the enterprise. It is influenced by the culture, habits, skills, occupation, likes and dislikes of the founder of the enterprise. Therefore, some people say that the enterprise culture is the boss culture.
However, many people may not agree that corporate culture will become a cost, but this is the case. We will find that the employees of some mold enterprises are depressed and inefficient. No matter how excellent employees enter, they will either leave or become like that soon. We can’t help but say that this is a “environmental” problem. And this “environment” is the corporate culture of this enterprise.
Corporate culture, like the life of an enterprise, will accompany the life of an enterprise. It can only be adjusted, not rebuilt.

10. Credit cost
This is a cost that involves long-term returns. Operating with integrity is like being honest. We have found that many mold enterprises are used to defaulting on the payment of suppliers, employees’ salaries, withholding from others, bank loans, etc. I think this can reduce the pressure on working capital of enterprises.
However, in the long run, this will become a serious hidden cost of enterprise operation: first of all, suppliers will count the time cost in their quotations, and such enterprises can not purchase the lowest priced raw materials or services. Secondly, employees’ salary arrears, violation of labor laws and regulations, are in danger of being punished.
Defaulting on bank loans and withholding from others will greatly reduce the credit of the enterprise. When the enterprise encounters difficulties one day, it will be besieged from all sides. Undoubtedly, mold enterprises have to pay a heavy price for this, but in fact, they have not gained any benefits from it.
11. Risk cost
It is the dream of every entrepreneur to push the enterprise onto the fast track. But the risk coefficient also increases synchronously. In particular, large and medium-sized mold enterprises, although they develop rapidly and earn rich income, once there is a crisis, it will be disastrous.
Many cases have proved that many of the risks of enterprises are caused by insufficient anticipation or poor management, and hidden dangers have been buried long before the risks occur. Many large enterprises or well-known enterprises will die out because of this risk. It can be seen that risk is an important hidden cost. However, this phenomenon is not obvious. It is really “if you don’t complain, you will be surprised”.
12. Entrepreneur cost
“Entrepreneur cost” refers to the cost brought to the enterprise by the boss himself. There is a good saying: one soldier will bear and one nest will bear. Entrepreneurs are like the leaders of an army. They are the employees who pay the highest cost. Many bosses of private enterprises have turned themselves into the “emperor” of the enterprise. They have the final say and all employees have become executive machines. However, the shortcomings of entrepreneurs’ personal factors will increase the heavy cost burden for enterprises.
This phenomenon is mainly reflected in small enterprises, but it also exists in large enterprises. We can also extend this cost to every department and even every employee of the enterprise. Because everyone should be responsible for their own work, we often emphasize that within your scope, you are the leader and you have the right to make decisions.
Many leaders have always been self-centered, which will greatly reduce the combat ability of the team and increase the high invisible cost. I remember once saying to a boss who complained that the company lacked talents: “what your company lacks is not talents, but the wisdom to find and make good use of talents”.
From the above, it can be seen that mold enterprises often have to bear a lot of burdens in operation and management, and the hidden cost is the heaviest one. Finding and effectively reducing the above hidden costs may be a powerful move for mold enterprises to make progress, which is also the real disadvantage of many mold enterprises.



About Huizhou Dj Molding Co., Ltd

Dj Mold is a China mold maker of plastic molds- injection mold, die casting moulds, plastic blow molding, rotational molding, medical plastic injection molding, two shot plastic injection molding, insert molding, overmolding, metal injection molding, micro injection molding, powder injection molding, ceramic injection molding, liquid injection molding, husky injection molding, household mold, casting mold, die mold tool, custom molds, china moulds, rapid prototyping tooling, plastic prototyping tooling, punch press tooling, die and tooling for mobile/ cell phone parts, automotive parts, vacuum cleaners, rechargeable tools, telephones, copiers, computers, multimedia speakers, and many other electronic products and household appliances. And also a plastic product manufacturer, mold manufacturer China– plastic parts, plastic water tank, plastic balls, plastic containers, plastic buckle, plastic anchor, plastic hanger, plastic spoon, plastic pipe fitting, plastic tumble, plastic tableware, plastic cups, plastic bottles, plastic tray, plastic cosmetic container, plastic case, plastic food container, plastic chairs, plastic caps, plastic cap closure, plastic tubes, plastic water pipes, plastic knobs, plastic tubing, plastic utility boxes, plastic racks and so on.

Person: James Yuan
Company: Huizhou Dj Molding Company Limited
Add:  LongGang Village,LongXi Town,BoLuo County,HuiZhou City,GuangDong Province, China
Tel: 86-752-6682869
Email: [email protected]

Site: https://www.jasonmolding.com/custom-injection-molding/

Share this post