Our manufacturing industry is becoming more and more difficult to operate as a result of a new pattern of high-speed growth in the overall economic environment, with more factors of production, such as manual, raw materials and energy than increases in the productivity of furniture enterprises.

Therefore, the constant exploration of ways to reduce costs is undoubtedly a self-sustaining option for furniture enterprises. However, in the process of lower actual costs, furniture enterprises sometimes generate exigency and eggs, which must be given attention.

Cost-reduction areas

Subsidies of raw materials

In the entire value chain of the furniture enterprise, there is a deposit between the various components, and the cost management of the next chain must be based on a chain-of-cost management, which does not mean that the costs of the next chain will also be minimized, not implying that the entire value chain costs will be minimized.

A number of furniture enterprises have unilaterally sought to spend the lowest cost on the procurement chain, followed by the purchase of raw materials at the lowest cost.

If the most cost-effective is indeed achieved solely for the procurement chain, the cost of the entire value chain is found to be increasing because of the higher cost of the production chain as a result of poor quality raw materials, the increased cost of the marketing sector, lower client satisfaction.

Focusing solely on production costs

Most managers will naturally interpret costs as production costs and limit them to production activity processes without any attention.

Indeed, in traditional manufacturing, production costs are only part of the total cost, about 50-70 per cent, and a considerable part of the cost comes from areas such as technology development, marketing, consumer services, which are often undervalued in cost analysis.

Therefore, while focusing on reducing production costs, ways of reducing costs need to be found from the perspective of the entire supply chain. Otherwise, too limited production costs are not only ineffective and sometimes counterproductive.

Total cost compression

The supply chain is a system of value added activities that are interdependent between furniture enterprises, with cost implications and sometimes even overstretching, and therefore the overall cost optimization should be pursued through mutual coordination among the supply chain and maximizing opportunities for cost cuts.

The principle of the cost advantage of furniture enterprises is to reduce the cost of furniture enterprises vis-à-vis rivals, i.e. to minimize the cost of not increasing product or service differentials, while ensuring the same value as competitive counterparts.

Failure to take into account the cost reductions of products or services that are not blindfolded may in no way create the cost advantage of the furniture enterprise, sometimes at risk of failure to pay.

How productive costs can be effectively reduced

Cost controls are not simply lowering prices, lowering wages, lowering procurement standards, and cost control processes do not undermine the interests of workers, consumers, societies and nature, do not relax product quality requirements and cannot be subsumed, but should be optimized in operating structures.

On labour costs

Now, even for a long period of time, a front-line worker’s salary will take the first place of business costs. Artificial, pork.

The cost will be higher, depending on the increased labour intensity of workers. Intelligent camera design software will reduce labour intensity by 80 per cent, and technical requirements for personnel are not high and better than management.

Improving productivity

Under-manufactures are too limited to produce a maximum of 35-40 floors per day, with no variation. CNC sets are expected to be around 60-80 floors per day for eight hours, together with more efficient automatic down platforms. The upgrading of business productivity will certainly pave the way for enterprise development.

Savings on raw materials

The average utilization rate for artificial panels, plus tresses, is around 2.3-2.4m2, and for the CNC series of software for intellectual optimization, the optimization of platoon utilization can be about 2.7-2.9m2, with an average savings of 0.3-0.5m2 per floor, at 50 panels per day. How much can you save?

Cost of carpentry

Managed knives are repeated and expensive. CNC sets of open machines are set at about 10 yuan renminbi, E1 brands can be processed at 25-30 floors, and E2 and plates can be processed at 10-20 panels.

Sample processing of wood equipment

Artificial fluctuation is essentially around ± 0.5mm, with serious equipment damage or limited staff skills and even less precision. CNC controlled the accuracy of the rolling machines in ±0.02mm, and the opening, opening and breaking of the cradle will not be smooth. This accuracy cannot be achieved by manual means, and it is very beneficial to cover and assembly.

Staff security production

Staff safety is an issue that each owner must consider before doing business. Work-related injuries among workers are very small. North gold controls the production of equipment, providing some protection for each risk-prone detail. Computers are operated on a central basis and the risks to workers are completely removed. (Source: Furniture industry)

According to the regulations, the regulatory bank is the implementation subject of the supervision of pre-sale funds. Before the pre-sale of commercial housing, the development enterprise shall sign a supervision agreement on the pre-sale funds of commercial housing with the regulatory bank. The development enterprise shall truthfully declare the key regulatory funds and shall not underreport; Before signing the supervision agreement, the supervision bank shall check the sub item composition and amount of key supervision funds declared by the development enterprise according to the goal of obtaining the first registration of real estate according to the project, and implement the whole process supervision in accordance with relevant regulations and agreements. The allocation of key supervision funds shall be controlled in strict accordance with the construction progress, completion acceptance, completion acceptance filing, completion of the first registration of real estate and other nodes.

If the development enterprise violates the Interim Measures for the supervision of commercial housing pre-sale funds of Hainan Province and the requirements of the above notice, fails to collect and use the pre-sale funds in accordance with the regulations, provides false supporting materials to apply for the use of pre-sale funds, evades supervision in the name of collecting other funds, or violates other regulations on the supervision of pre-sale funds, Haikou Municipal Bureau of housing and urban rural development shall order it to make corrections within a time limit, During the rectification period, the development enterprise shall not apply for the appropriation of pre-sale funds; If the circumstances are serious or refuse to correct, the pre-sale of commercial houses of all development projects of the development enterprise in Haikou city shall be suspended, recorded in the bad behavior of the enterprise, publicized to the society and included in the enterprise credit investigation system.

According to the regulations, if the regulatory bank has violations, Haikou housing and Urban Rural Development Bureau shall submit it to Hainan banking and Insurance Regulatory Bureau for handling according to laws and regulations, and restrict it from supervising new pre-sale projects within three years.

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