When you think about introducing new equipment, what criteria should you use to make a judgment? While it is important to assess profitability through break-even analysis for each product, it is also crucial to consider safety and evaluate it alongside the company's financial situation. When discussing a company's financial situation, the "balance sheet" (also known as the balance sheet or BS) is often mentioned. For those not in specialized departments like accounting, it may not be very familiar, and some may even shy away from it. In this document, I will first explain the structure of the balance sheet, then describe the characteristics of a manufacturing company's balance sheet, and finally explain the criteria of "fixed ratio" and "fixed long-term compatibility ratio" as benchmarks for introducing new equipment. I have often omitted detailed content and exceptions to keep the explanation as simple as possible, but I hope this helps you grasp the overall concept.

Regarding the efficiency of purchasing operations, have you ever thought, "I have concerns, but I don't know where to start!"? This document will explore the effects of consolidating multiple suppliers into one, using examples to illustrate the benefits. You will see that the impact extends not only to the purchasing department but also to other departments and ultimately to the overall management of the company. There will be discussions about financial analysis along the way, but I have tried to present the information as clearly as possible. While various operations may seem disconnected, they are actually interconnected. I hope this serves as an opportunity to reconsider purchasing activities from various perspectives, and I would be grateful if those other than purchasing personnel, such as business owners, could take a look! 【Contents of this page】 1. Challenges in purchasing operations 2. Identifying hidden costs and risks 2-1. Costs associated with individual orders for each component 【Supplementary explanation】Reduction of interest burden through inventory reduction 【Supplementary explanation】Review of labor costs (converting fixed costs to variable costs) 2-2. Risks of having a single production site 2-3. Cost reduction (factors determining product cost) 3. Considerations when reviewing suppliers

Regarding the efficiency of inspection operations, do you ever feel, "I have a sense of the issues, but I don't know where to start!"? In this document, we will examine whether the "company with the lowest price" is truly the best company for you, and whether there are hidden costs, using case studies. I believe you will understand that the impact extends beyond just the quality control department to other departments and ultimately to the management of the entire company. While each operation may seem isolated, they are actually interconnected. I hope this will be useful not only for those in charge of inspection operations but also for managers and newcomers. 【Contents of this page】 1. Problems in inspection operations 2. Identifying hidden costs 2-1. Is it enough to only look at the purchase price? 2-2. Reviewing processing methods 3. Things to be careful about when reconsidering suppliers

"To improve productivity, we will introduce new robots and promote automation!" Interest in automation in the manufacturing sector is increasing more and more. However, is the introduction of robots really contributing to improved productivity? Rather, could it be that we are now facing issues with stoppages and breakdowns, leading to a decrease in productivity compared to before? In this instance, we would like to examine the impact of robots on productivity using the case of metal processing parts produced through multiple processes. [Content of this page] 1. Which processes to automate 2. Impact of introducing automation equipment 3. Other points to consider

When involved in cost management of products in the manufacturing industry, various technical terms come up. Fixed costs, variable costs, direct costs, indirect costs, marginal profit, break-even point... "I have looked up the definitions of each and have a general understanding, but I have not yet reached a systematic understanding of how they relate to each other." I created this document in the hope of being of some help to those individuals. Many may feel that it remains at a basic level and may be unsatisfactory, but I would appreciate it if you could understand it as a resource for "understanding the first step."