Cigarette Factory Strives to Control Cost of Production

Source from:  Gannan City 11/22/2005

Gannan Cigarette Factory - one of the Top Ten manufacturing enterprises in south central China's Jiangxi Province - is taking steps to control the cost of production as a way of increasing competitiveness. On November 16, Director Huang Ping of the cigarette factory presided over a symposium on control over leaf tobacco cost in cigarette production, to study ways of how to rationally use leaf tobacco in cigarette production. The meeting urged the leaf tobacco purchase department of the factory to strengthen quality control in purchasing the raw material of leaf tobacco, and manage to ensure that all the leaf tobacco purchased is up to the standard before putting it into inventories. It also urged the leaf tobacco storage department to increase its management proficiency and strive to lower the cost of leaf tobacco in storage; the department of technology to strengthen technological research and development and to develop the best blending formulas of leaf tobacco, cut stems and strips; the department of accounting to strengthen the analysis and accounting of leaf tobacco cost in cigarette production; and the management department to keep strengthening internal management, in order to raise the coefficient of leaf tobacco utilization. Gannan Cigarette Factory had earlier held a series of symposiums respectively on control over the cost of material supply, advertising and publicity, technological research and development, operation, etc. Besides, the factory has formulated a package of rules for strengthening cost control, including the rules for strengthening the management of telephone fee spending and entertainment allowances or expenses and the rules for strengthening the management of raw materials purchase. According to the factory, the adoption of such measures for strengthening cost control has produced positive results. Founded in 1969, Gannan Cigarette Factory is a medium-size Chinese tobacco manufacturing enterprise with 180 million yuan (22 million U.S. dollars) in fixed assets and with an annual cigarette production capacity of 240,000 cases (12 billion cigarettes). Enditem