The guarantee of the economic efficiency of any modern enterprise is the production of high quality products. It should be as competitive as possible. The quality of the products in combination with a reasonable price has a direct impact on this parameter. An enterprise must constantly resolve contradictions. On the one hand, improving the characteristics of goods and increasing market share leads to an increase in production costs. In this regard, there is a need to change prices in a larger direction. On the other hand, the increase in the cost of goods leads to a reduction in demand. It is for this reason that it is important that the costs of product quality are manageable. To do this, it is necessary to create an entire system that is based on accurate calculations, studies.
First, it is important to have an idea of what customers are interested in, thanks to which mechanisms demand is substantially increased. Adopted to the essential characteristics of su
How much to produce
After the needs are clarified, the company needs to determine how much of the goods will be sufficient. If the quality of products increases radically, this will require serious investments, which can be recouped only in the case of mass sale of goods. It is important to justify the necessary costs with the appropriate economic calculations.
Product quality is invariable
This is a completely different scheme of cost reduction. If the quality of products in the enterprise does not change, then it becomes possible to change the price downwards or to increase the profitability of the production itself. This option is ineffective if, as a result of cost reduction, it is necessary to make adjustments in the technology or design of the goods. Undoubtedly, they are invisible to consumers, but most often they have a detrimental effect on the characteristics of the product. As a result, the company's reputation suffers, it will not be easy to recover.
As the basis for an effective cost management system, engineering and economic calculations must be used. A competent analysis of the economic activities of the organization is also important.