Jinjiang shoe company test water "profit center system"

The reporter learned from Jinjiang Mingwei Shoes & Accessories Co., Ltd. that the company's production department is proceeding with the introduction of the "profit center system" management. This move aims to promote the enthusiasm of employees to achieve the purpose of increasing efficiency and saving.

In Jinjiang, the same scene was also played out by manufacturing companies. Through the introduction of the "profit center system" model, Jin Enterprise hopes to achieve income-generating and increase employees' wages without increasing expenditure.

Profit-oriented management to achieve efficiency savings

According to reports, the "profit center system" is a profit-oriented management model. Taking Mingwei Company as an example, the company calculated the production costs of standardizing the production of glue, needlework, and molding of a pair of shoes, including the defective rate. For example, the cost of producing a pair of shoes is 20 dollars. At this time, the class team integrated the cost of production of a pair of shoes by 19 yuan in various ways, such as some work responsibilities to people, glue quantitative distribution, and reduction of parking waiting. In other words, the team saved the company a dollar for every pair of shoes. Then, for the 1 dollar saved, a certain percentage is left to the company, and the other ratio is left to the employees. Different positions are distributed in different proportions. However, if the cost of producing a pair of shoes for a certain team is 21 yuan, then the 1 dollar that is wasted is also the responsibility of the employees according to the proportion of different positions.

“After the trial of this model, employees’ awareness of efficiency gains and savings was significantly increased. Employees were actively involved in the transformation of production processes. Plastic bags and other products were thrown away after they were mostly used up once. Now, they have been reused. Employees actively seek solutions. Reduce unnecessary waste and increase production efficiency,” said Qiu Jinchang, deputy general manager of Jinjiang Mingwei Shoes Co., Ltd.

Qiu Jinchang told reporters that the company has basically completed the introduction of this management model, some departments have begun to test the water, next month the production department will fully import the "profit center system" management model.

It is reported that some local companies are focusing on this kind of thinking and are also trying some management models. Industry sources pointed out that the implementation of the "profit center system" is the future trend. This model helps motivate employees to exert their autonomy, work more diligently, encourage all shareholders to obtain more investment rewards, and provide employees with reasonable remuneration so as to increase the spirit of professionalism and thus accelerate the growth and development of the company.

If the conditions are not available, you can first select the "business division system."

In fact, the profit center system is not unfamiliar. However, traditional private enterprises are profitable from the point of view of operating, and the "profit center system" is the accounting cost from the perspective of management. Because of the different accounting methods, the implementation of some companies has not been successful.

Cheng Lirong, director of consultancy department of Boss Consulting Management, pointed out that the "profit center system" must calculate the cost of production in all aspects in order to effectively improve. The thinking of the traditional private enterprise managers is the general ledger, so it is difficult to calculate the true accounts of each link.

"The 'profit center system' must be effectively and effectively implemented, and it needs the support of external forces, such as consulting agencies, in the early stage. In addition, the 'profit center system' must be effectively implemented, the company must have relatively smooth production management processes, and orders must be stable. If the conditions are not met, and if we do not want to increase the cost, we hope to increase the wages of the employees and increase the income of the company, so we can take the next step and adopt the 'business unit system'. Thinking and 'profit center system' are the same, only 'business unit system' is only detailed to the department, and 'profit center system' is detailed to the workshop team.' Cheng Lirong said.

As a matter of fact, the Yonggou Group began to implement the “business unit system” as early as three years ago. "After the implementation of the 'Department of Business System', the management of the company's management personnel is more effective and its execution is better. Every month, there are clear goals and ideas for work." said Xiao Jin, human resources manager of Yonggu Group. "The "profit center system" model is in the same line, except that the "department system" is more extensive, and the finance is still calculated as general ledger.

It is reported that Yonggu Group has a number of independent branch companies. Under the branch companies, there are independent production departments. In the way of independent accounting of the departments, the company will give annual sales targets and profits to various departments, and relevant responsible persons in excess departments will receive certain reward.