An Application in Manufacturing Enterprises Relating to Cost and Performance Plannig

Abstract

Purpose – The aim of this study is to create a production performance and cost planning model to minimize costs in production enterprise, prevent worker turnover and protect work peace. The achievement of this aim will make a significant contrubution to the realization of the financial purpose of the enterprise. Design/methodology/approach – In this study, which is carried out within the scope of applied research, multi-department manufacturing enterprises are the subject of study. The model has ideal features for businesses where production is carried out in multiple production centers with the contribution of production support centres. The model is combined with the technique of determining the direct and indirect labor hours of the production based on the net working hours and workmanship performance by creating a monthly detailed work schedule for the direct workers working in the manufacturing enterprises, determining the number of workers based on this, optimizing the increase and decrease in the number of labors caused by monthly production fluctuations. On the one hand, minimizing the labor costs, on the other hand, the protection of the work peace makes it possible to protect the social responsibility understanding of the enterprise in a strong way. This model, which provides cost minimization, makes a significant contribution to the realization of the main objectives of commercial enterprises. The first part of the model has been covered previously in this journal. In this study, the whole model is considered as a whole with new data. Findings – The first finding of the model is the labor schedule. This calendar will form the basis of labor and general production expenses. By 2022, hourly wage workers will work for a total of 2730 hours. 2122.5 hours of this time will be spent in actual manufacturing. The data of the work schedule and the labor manufacturing performance targets will make it possible to determine the direct and indirect labor hours and the labor capacity of the department, which is the second finding of the model. Determining the monthly number of workers in the department based on direct and indirect labor hours can be stated as the third finding. According to the performance targets and the planned activity volume (production amount) of the manufacturing unit, 92,635 hours of labor are needed, and 27 to 50 workers are needed per month in return for this need. According to the technique envisaged in the model; The need for additional labor caused by monthly production fluctuations and net working hour differences or the recruitment and removal of workers caused by excess workers is eliminated. This approach ensures that the labor cost of the department is optimized. It is concluded that a total of 4470 hours of overtime work per year is required in the production enterprise considered in the model. On the other hand, the cost of hiring and firing 77 people will be avoided. Apart from the monetary aspect of the business, more importantly, business peace and the strategic social responsibility understanding of the business will be preserved. As a result, this solution provided by the model will make it possible to keep the general production expenses at a minimum level in addition to the labor costs of the department. Discussion – With the performance-based department costs budgeting model, it is aimed to realize the strategic goals of the enterprise and this is easily realized on the basis of the manufacturing unit. It is calculated that a business in the example in the model has to hire and fire 77 people in only one manufacturing department during the year. For example, in enterprises with 50 manufacturing departments (telecommunications, etc.), the problem will become much larger. In enterprises where recruitment and dismissal of workers follow a monthly course, not only does the peace of mind deteriorate, but also the production costs increase, and the technical life of machinery and equipment decreases due to inexperienced use. The model, in an analytical approach, sets out the methodology to be able to maintain a peaceful work environment and keep departmental costs to a minimum.