Enhancing Staff Wellbeing Through Cost Management in the Crisis Period

In the crisis period among the enterprises there are consistent price rises ‐ primarily on resources and then on the end product. Increase in costs on production aggravates the problem of the enterprise survival on the market and heightens the necessity to optimize them. Cost reduction on staff, conducted in the traditional way, which is often a main cost ratio of the enterprise, leads to staff wellbeing reduction. That is why it is necessary to use an effective alternative ‐ cost management. Cost management is considered as an integrated enterprise activity aimed to optimize its own costs with minimal losses. The cost classification used in lean production is described, as well as several cost optimization techniques are illustrated by describing the real experience of the Japanese company "Toyota". The experiment of introducing selected tools of lean production in the hotel-type dormitory No. 5 of the National Research Tomsk Polytechnic University is described. As a result of the project the 5S system was implemented at the maid's workplace and in the room. The most optimum alternative of maid's movement in the room while cleaning is visualized in spaghetti diagram. Time losses reduction allows creating cost-effective value for customers. © 2016 Published by Future Academy www.FutureAcademy.org.uk