Application And Implementation Of Cost Per Unit For Paint Shop At Shanghai Volkswagen

With the rapid development of the automobile industry in China, the competition of the auto market has become increasingly fierce. For auto company, how to reduce the manufacturing costs is more important. With the manufacturing costs, the costs of the chemical raw material in paint shop accounted for a larger proportion. Previously, the chemical raw materials procurement approach has been based on how much chemical raw materials the paint shop used. Such a way will inevitably mean that more chemical raw materials the paint shop use, more profit the raw material suppliers will be able to achieve. Therefore, during the production process, they will not actively help paint shop to reduce the costs of chemical raw materials. Such a way will certainly not do help to auto company to reduce the cost of chemical raw materials.In recent years, the paint shop of foreign auto company has been a popular new way of chemical raw materials purchase──Cost per Unit. That is, the chemical raw materials procurement approach is based on how many eligible cars produced in paint shop. In this way, the savings of chemical raw materials also will do good to the raw material suppliers. Compared to the traditional way of chemical raw materials procurement, the implementation of the Cost Per Unit for auto company will brought the following advantages:(1) The management of raw material suppliers will be more easy.(2) It will do help to improve the quality of products.(3) It will reduce the costs of chemical raw materials.(4) It will save personnel costs.(5) It will reduce the complexity of logistics. It will also achieve"Just in Time"and"zero inventories".