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In First National Festival of Lowering Cost Price
11/1/2011
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In First National Festival of Lowering Cost Price, Zar Macarone Company which is a company affiliated to Zar Research and Industrial Group won the title and was appreciated by the panel of judges for “successful experience” because of 17 experiences and executive plans.

 

In the forum of this festival, Appreciation Letter and Festival’s Special Statuette were awarded by the Minister of Industries, Mines and Commerce to Morteza Soltani, the chairman of the board of directors of Zar Research and Industrial Group. In their detailed report, the Central Staff and the Panel of Judges emphasized on the fact that in field of decreasing the cost prices of products in Iran Zar Macarone had been one of the most successful companies of private sector and expressed as follows: “Zar Macarone, using  and managerial techniques, has succeeded to making considerable saving, but what distinguishes this company from other successful companies is the company’s all-out  attention to the issue of costs. The most unique experience of Zar Macarone was their experience on purposeful informing and promotion costs. By assuming examining and appraisal of efficiency and effectiveness, Zar Macarone has completed comprehensive analysis in this field, the analysis which is unequalled in its kind.”

Morteza Soltani, the managing director and chairman of the board of directors of  Zar Research and Industrial Group, who was present in the conference as speaker, said: “ In scientific and academic resources, several components of cost price have been recognized. There are price control of direct materials, direct wages, and overhead costs. Thus, for price control. Supplying direct materials must be a criterion while quality and cost shall not be ignored. Through proper management on human resources, maximum efficiency shall be earned so that direct wages be controlled. Finally the expenses having no added value for the product shall be eliminated and the overhead costs be controlled.”

In response to the question that why we had not been able to conceptualize the cost price, Mr. Soltani said: “As an industrialist, I believe that the concepts such as separation of ownership from management, human-centered and virtue-centered look in production and business fields, emphasis on efficiency in competitive atmosphere, and subsidy-free economy have been neglected. However, at present, with implementation of Purposeful Subsidizing Law we are at threshold of economic revolution and subsidy-free production which are foundation of cost price approach.”

Comparing existence with lack of subsidies in national economy, Soltani said: “In subsidy economy, cost price concept has no meaning. Principally, when false and non-competitive relation resulted from subsidy enters into production system all things are destroyed. In subsidy atmosphere, science, globalization, brand making, competitiveness, and the customers’ rights have no meaning and sense at all. Fortunately, Iran has entered into era of unsubsidized economy. This is the third revolution which will promote our country onto zenith of progress and prosperity. In such a condition, science f8nds its real sense and cost price may be realized based on scientific and engineering principles.”

Pointing out the successful experiences of his own organization, the chairman of the board of directors and managing director of the Zar Research and Industrial Group added:

 

 

“The cost price implementation model of the group is essentially based on three columns which are ‘financial column’, ‘quality guarantee’ and “research and development’ Thanks to these three, the organization got capable to promote the efficiency of human force, decrease and control the raw materials costs, increase production, control current costs, and finally make continuous analysis on overhead costs.

Several times increase of production in five years, winning first place in domestic market, export-centered production, and entering of Iran into pasta exporting countries of the world are among the blessed achievements of this approach in Zar Research and Industrial Group.”

 

 

 

As closing point, he said: “Taking benefit from the opportunity resulted from economic revolution and subsidy-free production, we may build, before the horizon year of 2015, a big monument which puts the countries of the region under the shadow of greatness of Iranian nation.”

 

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