ABC-based Method For Study On Variety Cost Evaluation In Mass Customization Product

Under the changeful market environment, more and more business enterprises are concentrating on customers for investigating and satisfying increasing various needs of customers. In the past, business enterprises pursued low cost or the variety;but today, more business enterprises know that the request of customer in product quantity, delivery time, cost and categories is higher;the life cycle of the product is shorter;benefit maximization and cost minimization has more pressure too. So the enterprise must find out the integration strategy that carries out benefit and variety customization simultaneity. Mass customization is getting people's attention and recognition by its special competitive advantage and is developing quickly.Mass Customization (MC) is a new kind of production mode. The core thought of it is to satisfy customers' individualized requirements by mass production efficiency. Along with the enterprise of MC developing quickly, the enterprises of MC in our country have acquired larger development space and are facing higher challenge. How to decline the cost for improving the competition ability of the enterprise is the urgent problem and needs comparatively accurate cost information first to resolve it.The increase of Variety Cost resulted from individualized products is a key problem in Mass Customization (MC). To quickly evaluate the variety cost of individualized products for customers and analyzing the influence of diversified product in development strategy planning for enterprises, this paper begins with analyzing the characteristics of MC enterprises and the importance of forming cost estimation methods to obtaining the customer's orders;After analyzing the classification of the proper cost estimation methods in MC ,the paper sums them up into several kinds of typical cost estimation methods, it compares and analyzes the characteristics of each method;A novel method based on Activity -Based Costing (ABC) was presented, which could estimate the variety cost quickly and accurately after. The method combined activity dictionary, activity phrase dictionary with BOM (Bill of Material) - based to simplify the evaluation of variety cost and achieve the commonality and modularity. An approach to analyze the key factors influencing variety cost was also given. Finally, an application example of the proposed method was provided.