The recession, which began in the fall of 2008, continues to this day in almost all countries of the world. It is production that suffers the most because of the crisis. It is important for managers to understand the ways out of this situation.
Instructions
Step 1
Form a budget for the enterprise. Plan costs and delegate authority to regulate them to department managers. All this will be a real way to reduce costs. If this procedure was not carried out before the crisis, then restrict yourself to drawing up a forecast balance, a budget of expenses and revenues.
Step 2
Take care of the management of production units and form a budget of accounts payable and receivable. All of this together will help optimize cash flow and keep costs down.
Step 3
Look for buying opportunities with other buyers. The more joint purchases you make, the more volume discounts you will receive. Work more closely with suppliers of key material and raw materials. Always comply with the terms of the contract on time and ensure financial transparency.
Step 4
Consider outsourcing the most expensive and time consuming processes. Carefully analyze what is profitable for you to produce on your own, and what is better to buy from the manufacturer. For example, if there are boiler houses at your plant, you can transfer them to the ownership of the city hall, thereby removing their maintenance from the expense item.
Step 5
Tighten control over all types of costs. Keep track of even the smallest details in your enterprise. For example, some employees often deal with personal issues by making calls abroad on a landline. And this is just one article of such expenses. Reduce waste during your work day.
Step 6
Optimize your workflows. Discuss all the controversial aspects of product quality and manufacturing technology. Control the work of staff at all stages. Try not to be careless about raw materials and materials. Then the amount of waste will be significantly less, which will lead to cost savings.
