The cost control refers to the infiltration of the concept of cost control into the production technology, production methods, and production management measures in the production process, and the adjustment of various consumption in production And restrictions, and control production expenses within the scope of the cost control plan of
upholstery furniture manufacturers.

In my country’s manufacturing industry, as the overall economic environment has entered a new normal of medium-to-high-speed growth, the increase in production factors such as labor, raw materials, and energy is greater than the increase in the production efficiency of furniture companies, making it more and more difficult for furniture companies to operate. Therefore, we continue to explore ways to reduce costs. The way is undoubtedly a controllable way for furniture companies to save themselves. 

  Three misunderstandings in reducing costs for furniture manufacturers

  The raw materials are shoddy

  In order to reduce the cost of raw materials, they often gather many suppliers together and ask them to reduce prices. If the supplier does not agree to the requirements of the furniture company, the cooperation relationship will be terminated immediately.

  In fact, this is a misunderstanding that furniture companies can easily fall into in reducing costs.

  In the entire value chain of a furniture enterprise, there are dependencies among various links, and the cost management of the next link must be established on the basis of the cost management of the previous link.

  Minimizing the cost of the previous link does not mean that the cost of the next link will also be minimized, nor does it mean that the cost of the entire value chain will also be minimized.

Most managers will naturally understand the cost as production cost, and limit the cost reduction to the production activity process and ignore it. In fact, in traditional manufacturing, production costs are only part of the total cost, accounting for about 50-70%.

  Another considerable part of the cost is generated in the fields of technology research and development, marketing, consumer services, etc., but they are often seldom paid attention to in cost analysis.

  Improper compression of total cost

The supply chain revolves around the core furniture companies, through the control of information flow, logistics, and capital flow, starting with the purchase of raw materials, making intermediate products and final products, and finally delivering the products to consumers through the sales network. Some managers believe that furniture Enterprises should pursue the minimization of expenditure costs in all links.

  The principle of measuring cost advantage for furniture companies is to reduce the cost of furniture companies relative to competitors while ensuring that they provide the same product value as competitors, that is, to reduce costs that do not increase product or service differentiation. 

The Ways to reduce furniture production costs for
upholstery furniture manufacturers

Cost control is not simply about lowering prices, lowering salaries, and lowering procurement standards. In the process of cost control, the interests of employees, consumers, society and nature cannot be harmed, product quality requirements cannot be relaxed, or shoddy products cannot be used. It should be optimized in the business structure.   2. Employee labor cost   At present, even for a long time in the future, front-line workers will occupy the first place in the cost of enterprises. Manual cutting and punching. According to the increase in labor intensity of workers, the cost will be even higher.   The intelligent cutting machine supporting design optimization software will reduce the labor intensity of workers by 80%, and the technical requirements for personnel are not very high, and it is better than management.   4. Improve production and processing efficiency   Manual blanking is too limited, and it can blank up to 35-40 boards per day, and it does not contain abnormal shapes. CNC blanking feeds about 60-80 boards in 8 hours a day, and the efficiency of automatic loading and unloading platform will be higher. The improvement of enterprise productivity must pave the way for enterprise development.   5. Save raw materials

The average utilization rate of manual calculation of plates and special-shaped cutting is around 2.3-2.4㎡, CNC numerical control supporting intelligent optimization software, optimized layout, but the plate utilization rate reaches about 2.7-2.9㎡, saving 0.3-0.5㎡ per board on average, press 50 per day Zhang board count. How many boards can be saved?

  Woodworking equipment processing accuracy

  The accuracy of manual cutting is basically about ±0.5mm, and the equipment is severely worn or the staff’s skills are limited, and the accuracy is even lower.

  The precision of the CNC cutting machine is controlled within ±0.02mm, and the cutting, slotting and punching will not chip. This kind of precision cannot be achieved by manual operation, which is very beneficial for edge sealing and assembly.