Cost and product quality

Cost and product quality

Each company produces products of a certain quantity and quality.

In the manufacture of products are spent on the purchase of raw materials, fuel, auxiliary materials, etc. Also used machines, equipment, tools. Repair and replacement of obsolete equipment also require costs. All workers who receive a salary at this enterprise participate in the made production. Funds are also spent on the sale of the company’s products. If all these costs are expressed in cash, we get the cost of production.

The cost price is full and production (factory).

The total cost of production is called the monetary value of the costs associated with the production and sale of products.

The costs associated directly with the production of products, called production (factory) cost.

To determine the cost of each individual product, calculate (calculate) all costs per unit of production. In the process of calculation, all costs of the enterprise are grouped by cost items: raw materials and materials, fuel and electric energy for production and technological needs, wages, the cost of introducing new equipment, etc.

Cost and product quality - 2Very often at the enterprise in parallel with the main production from the same raw materials make side. Therefore, it is necessary to exclude the cost of by-products from the cost of the main production.

The ratio of costs for different items of calculation depends on the type of enterprise. One important article is the raw material, the other – electrical energy, etc..

Salary depends on the degree of automation and mechanization. The higher the degree, the lower the cost. With manual labor, the share of wages increases.

The introduction of new technology with the use of expensive equipment increases the cost of depreciation.

Depreciation (from lat. amortisatio-repayment) is the gradual deterioration of fixed assets (equipment, buildings, structures) and the transfer of their value to the products

Analysis of the structure of the cost of production reveals the reserves of production and find ways to reduce the cost of production.

Cost of production refers to the main indicators of each enterprise.

The main reserves to reduce the cost of production while maintaining its high quality, rational use of raw materials, auxiliary materials, fuel and energy.

Profitability of production is characterized by low cost of production with high quality and appropriate working conditions, reliable environmental protection. These indicators are always considered in a complex and it is impossible to estimate a way of production without taking into account at least one of them.

In addition to cost, the products are characterized by quality.

Quality is a set of product properties that determine its suitability to meet certain needs of the consumer according to its purpose.

Standards play an important role in improving the quality of raw materials and product quality.

Standard (in English) means norm, sample, measure. In technology, the standard is a sample, a model with which industrial products are compared. Standards are also documents establishing requirements for raw materials and products, which should be followed by each enterprise that produces them.

Standards for the production of bridge production contain certain technical characteristics of these products. They provide for the type, brand, shape and size of products and materials that must be produced by the company, taking into account the physical and mechanical properties, chemical composition, etc. at the same Time this document provides rules for the acceptance of products, methods of testing. In addition, it provides for the rules of packaging, storage and transportation, which guarantees the safety of product quality.

The use of standards ensures the interchangeability of individual parts and entire assemblies in machines and mechanisms, which makes it possible to make full use of raw materials, fuel, electricity and promotes the introduction of new technology.

Standards are widely used in all countries of the world. Depending on the scope and distribution, they are sectoral, inter-sectoral, state, etc

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