The twelve hidden costs of plastic mould manufacturing enterprises

Small and medium-sized enterprises in the plastic mold industry will encounter development bottlenecks in a certain period of time. Operating costs have been rising, but it is difficult to find the “location” of the cost. We call this “hidden cost”. This article summarizes the various “hidden costs” of enterprises, which can be used for self-inspection.

  1. Meeting costs. The management of mold companies is nothing more than a race against time. Meeting is a collective activity for mold companies to solve problems and issue instructions, but it is also a high-cost business activity. And many managers of plastic mold companies have not mastered the meeting skills, there are “no preparation before the meeting, no theme during the meeting, no implementation after the meeting, no need to attend the meeting, no time control, and no bounds to speak”.
  2. Purchasing costs.There used to be a two shot plastic mold company. When doing a new project, the daily operating cost of the project team was RMB 80,000. However, on the eve of the product launch, the purchasing department purchased more than RMB 100,000 of two shot materials. It took a week for the reason to find low-priced suppliers to save procurement costs. As a result, the entire marketing team could not complete the contract fulfillment delivery date after waiting one more week
  3. Communication cost. In most mold companies, you will find that serious distortions occur in the communication process between colleagues, or the words are not satisfactory, or the answers are not asked, or a hundred people have their own understanding. Let many processes become invalid processes, or lose 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.
  4. Overtime cost. Many bosses in the mold industry always believe that employees “work overtime” after get off work “forgetting sleep and food” is a phenomenon of dedication. But hardly realize, this may imply a high cost. The reason for working overtime is not necessarily because the work is too heavy, it may be caused by the low efficiency of the employees. If the objective task is really heavy, then the company should add new personnel and positions in time for real development and progress. Overtime work consumes more energy and physical strength of employees, and seriously overdrafts the health of employees. In the long run, some important employees will not be able to perform their performance for a long time, and it will bring hidden dangers to the company. For example, some mechanical operators work overtime for a long time. It leads to mental disorders and accidents, and enterprises have to pay a heavy price for this.
  5. The cost of talent turnover · The loss of employees, especially old employees, will undoubtedly bring expenditures that are several times higher than their income for mold companies. After many small mold companies have been in business for many years, you find that they have always been such a small team, and apart from the boss, none of the employees stayed from the beginning of the establishment of the company. This may be an important reason for its failure to develop.
  6. The cost of position misplacement.There is a famous saying in human resource management “put the right people in the right place”. Unfortunately, there are really not many companies that can really do this.
  7. Process cost.The chaos of enterprises is mostly due to the process, which is a common problem in the management of mold enterprises. For companies with slow development, the process must be chaotic or unreasonable. They bear high costs for this, but they have been turning a blind eye.
  8. Stagnant resource costs.Stagnant resources can be said to be the most extensive “hidden costs” in plastic mold companies, such as idle equipment, overstocked inventory, low-utilization jobs, idle funds, and idle businesses. Although they may not continue to consume the investment of plastic mold companies, they are part of the assets of plastic mold companies, and the company will bear hidden costs such as interest.

9.Mold corporate culture cost

Many people may disagree that mold corporate culture will become a cost, but it is true. We will find that the employees of some mold companies are sluggish and extremely inefficient. No         matter how good employees are, as long as they enter, they will either leave soon or they will become like that. We have to say that this is an “environmental” issue. And this “environment” is        exactly the corporate culture of this company.

  1. Credit cost We have found that many large and small mold companies are accustomed to defaulting on payment from suppliers, accustomed to defaulting on employee salaries, accustomed to deducting others, accustomed to defaulting on bank loans, etc., thinking that this can reduce the pressure on corporate liquidity. But in the long run, this will become a serious hidden cost of business operations.

11.Risk cost

It is the dream of every mold entrepreneur to push the mold enterprise into the fast lane. But the risk factor also increased simultaneously. Especially large and medium-sized plastic mold companies, although they are developing rapidly and earning a lot of money, but once a crisis occurs, it will be catastrophic.

  1. Mold entrepreneur cost

There is a saying that goes well, (a raging soldier; a raging nest). Die entrepreneurs are like the leader of an army, and they are the most expensive employees of die companies. The bosses of many private enterprises have turned themselves into the “emperor” of mold companies. Everything is in charge, and all employees have become execution machines. However, the shortcomings of entrepreneurs’ personal factors will add a heavy cost burden to enterprises.

It can be seen from the above that plastic mold companies often have to bear a lot of burdens in their operation and management. Discovering and effectively reducing the above hidden costs may be a powerful measure for mold companies to progress.