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The Method of Application, Review and Implementation of Engineering Proposals for Cost Reduction at an Engineering Company

Abstract

With the increasing globalization of the world economy, competition in the market environment for machine-building enterprises is becoming increasingly aggressive. Analogues of Russian goods and services supplied to our country in the bulk of countries such as China and South Korea require domestic engineering enterprises non-standard approaches to ensure competitiveness. The conditions of the modern market environment require machine-building enterprises, the use of methods to reduce costs to gain new markets and the development of existing ones. Regardless of the type of market (global, local or regional), without the use of methods to reduce the cost of production to achieve positive results becomes almost impossible. The size of the cost price has a direct relationship with the size of the mark-up and sales volumes. When selling products, the company has to focus on the average market price level. At present, the price of products cannot be formed by the method of adding to the production cost, the required sales margin for it. At the same time, the method and methods to reduce the cost should be systematic at the machine-building enterprise. The article deals with the issue of reducing the cost of production  in one of the areas of machine-building enterprises, is to reduce the cost during the design and technological preparation of production. Also, work on reducing the cost of production can be carried out in other areas of the enterprise: changes in the number of personnel; optimization of logistics flows; reduction of energy costs; restructuring of the enterprise; reduction of marriage; placement of available funds. Design and technological proposals to reduce the cost of products, based on two principles – is to improve existing product designs and processes and the development of fundamentally new design and technological solutions. The paper presents the developed by the author method of management of submission, consideration and implementation of such proposals in the machine-building enterprise. The relevance of this study is to increase the profitability of production, taking into account the work of machine-building enterprises in an aggressive market environment, as well as the desire for innovation and flexibility. The purpose of the study: to develop a method of submission, consideration and implementation of design and technological proposals to reduce the cost of the machine-building enterprise, taking into account the work of the enterprise in an aggressive market environment. Researches and approbation of a technique were carried out at the leading machine-building enterprises of the city of St. Petersburg. The article is of interest to specialists in the field of management of design and technological preparation of production, machine-building enterprise, the economy of the enterprise and has a scientific applied value in the field of Economics and management.

About the Author

A. S. Skorobogatov
Peter the Great St. Petersburg Polytechnic University
Russian Federation
Skorobogatov Andrey S., Graduate Student


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Review

For citations:


Skorobogatov A.S. The Method of Application, Review and Implementation of Engineering Proposals for Cost Reduction at an Engineering Company. Vestnik NSUEM. 2019;(1):182-191. (In Russ.)



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