Development of Cost Reduction Strategies to Enhance Productivity of Community Enterprises in Pa Daet Subdistrict, Mae Suai District, Chiang Rai Province

Abstract

          This research aimed to study the context, problems, needs, and production costs, as well as to develop strategies for reducing production costs in order to enhance productivity. It also sought to build knowledge and skills related to cost reduction and to conduct a comparative analysis of production costs before and after implementation among community enterprises in Pa Daet Subdistrict, Mae Suai District, Chiang Rai Province.

          The sample group consisted of 50 individuals, including authorized representatives, community enterprise members, group leaders, and occupational group representatives. Participants were selected using purposive sampling. Data was collected through interviews and cost data collection forms. The data analysis involved three main steps: data reduction, data organization, and interpretation through logical reasoning, leading to conclusions aligned with relevant concepts and theories. The findings revealed that cost recording among community enterprises was still lacking in detail. Typically, costs were recorded in general terms in notebooks or sometimes merely memorized, which led to missing critical details. Cost calculations were simplified, often including only raw material costs, member labor costs, and general expenses. The development of cost-reduction strategies applied ECRS principles and value analysis, which focused on streamlining processes to maximize production efficiency while enhancing both products and production processes without incurring unnecessary costs. This promoted both cost-effectiveness and product quality, leading to increased productivity and long-term sustainability for the community enterprises. A comparative analysis of production costs before and after implementing improvements showed a decrease in costs, along with increases in productivity and product quality. The study also proposed further strategies such as reducing packaging and transportation costs and establishing a long-term cost database system to support sustainable development.