Business-Process Optimizing Research Under The Activity-Based Costing

Since 1980s, the global economydevelops rapid in market,material, equipment, manpower and so on,Which makes enterprise's profit depend on innovation of management and technology. The ideas and methods of processing complex objecet in system engineering and cybernetics have been used in researching about manufacturing of enterprise. The science and technology department in our country made CIMS be one subject of "863 " in cybernetics field,for example Profit_Driven Manufacturing Enterprise Optimization. With the great changes in the manufactural environment and management techniques, the radical transformation of the cost 's structure (the proportion of direct expense declines, and indirect expense continuously increases) happens in the apportionment of expenses supplying improper cost information to the decision-maker, which gives an impulse to the Activity-Based Costing. This paper raises a theory about BPR-Oriented cybernetics based on activity cost for solving the problems of current cost control system, and an instance founding on the theory.Theoretically, the paper researches cost control in the view of system engineering and cybernetics, and adopts the model of activity process to describe cost controlling process, and analyze the activity for optimizing the productive cost using the method of linear programming, which belongs to operational research.Firstly, the paper introduces the theoretical background and actual study of Activity-Based Costing (ABC) and Business Process Re-engineering (BPR). Secondly based on the theory of ABC drivers, modelling the producing process of a kind of cable enterprise with IDEF,and on the base of which,combines the redundancy activities in the producing process, and puts forword four kinds of calculating on costing drivers,then,instead of the hierarchical multilevel organization establishes flat producing process. After the structure optimising, the next step is to optimise the capability of the process, based on the activity hierarchical method and activity-costing model, a "multi-products activity-based costing-Volume-Profit (CVP) decision-making model" is put forward. According to the result of the model, the ratio of utilization about activity-capacity is analyzed, through which the rationality of activity composition in productive process can be found out, higher the ratio of activity utilization, more easier the activities become the chock point of productive process, these activities accordingly are the keystones to manage and optimize. Finally, the paper applying the CVP model to analyze a case of a cable enterprise about manufacturing process, and propose an optimizing scheme from structure and capability.