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These Are Hidden Costs To Be Cut By Machining Plants

Jul 20, 2022

What are the "hidden costs" that can be reduced.

1. Conference costs

Meetings are the main way for enterprises to communicate, mainly to solve problems and issue instructions, but this is a high-cost business activity. Because everyone participating in the meeting, every minute, means the number of minutes of the total number of participants, so the time cost is very high. However, the managers of many enterprises do not master the skills of meeting, which wastes time and cost.

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2. Communication costs

In the daily work of the machining plant, we can find that there will be serious distortion in the communication with colleagues, which will cause many processes to become invalid processes, and may also lose important opportunities. It has seriously affected the development of enterprises.

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3. Overtime cost

The managers of traditional machining plants believe that "overtime" is a phenomenon of dedication. Sometimes, the "spirit of overtime" will be advocated. However, this implies a high cost.

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Why is overtime also the hidden cost of machining plants? Mainly because: first, many times overtime is not caused by heavy workload, but by the low efficiency of employees. Overtime means low efficiency. Second, overtime will waste employees' energy and physical strength. In the long run, important employees will not be able to give full play to their effectiveness for a long time. Third, overtime employees may use the company's resources to engage in their personal affairs during overtime.


4. Talent flow cost

China's small and medium-sized machine processing plants are very deficient in human resource management. They do not pay attention to employees and do not realize that the departure of an employee is a cost to the company. After an employee enters the processing plant, the enterprise should bear the early-stage investment such as the training fee for the employee, the early-stage cost of recruiting new employees for the post, and the risk of whether the new employee is suitable for the post.


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