Research On The Cost Control System Of Lianchen Machinery Factory

Cost management is not only an important process for every company on manufacturing control, but also it is one key indicator to evaluate related performance of Relative Corporation. In the mechanical processing industry, business mainly focuses on three aspects, including price, quality and service for the implementation of management. Quality is the premise guarantee of participating competition for the enterprises, which is depended on the customers' requires. It is through the management that service is realized. With the deep development of market economy and fierce competition between enterprises, eventually the competition of the enterprise is for the price competition in different level of customer. From this point, we can know that it is cost management that decides the products'prices. And it is also the key point. The core competitiveness of enterprises is mainly manifested in the cost competitiveness. The contents of the cost management are involved in every aspect of business management, so their tasks shoulder heavy responsibilities.The article is made up of five chapters. Chapter one is the introduction. It firstly introduces the background, purpose and significance of the research, and also gives the main research contents of the thesis and the basic frame structure. Chapter Two is the literature review part. It mainly introduces the domestic and foreign study on the cost control theory and its development. And new methods and viewpoints of production cost control are given and understood. Chapter Three describes the model of designing the production cost control system in detail. Chapter Four is a case study. By using examples analysis, combined with the own characteristics and production management practices of a certain small-and-medium enterprise, the constructed production cost control system is tested and analyzed. Chapter Five is the conclusion and prospect part. Firstly it summarizes the effectiveness of the production cost control system, and gives the corresponding suggestions. Finally, to build the perfect cost control process and its system is needed in the future. In this paper, the main conclusions are as follows:First, enterprise should conduct the cost analysis according to the data, including the factors and importance of each cost part. And on the basis of the importance of the principle, the target cost of the enterprise is decided for improving cost. Second, with the development of enterprise and the introduction of new equipments, it is needed to make the reasonable layout design according to the current actual situation, not being always the invariant pattern. Therefore, in combination with the production process of the enterprise, by using the advanced analytical tools, the space of industry is made to be reasonable layout. So it meets four principles. It needs the minimum space on the basic of meeting the needs of the premise. The distance between process is the shortest; the cross movement is minimized between materials; the system path is the most economic.Third, the premise of the implementation of the activity-based costing is to identify the cost pool. Therefore, the cost pool should be identified with the actual operation process of the enterprise, analyzing the reason of the enterprise cost and the corresponding operation process. And the corresponding activity is be integrated to ultimately select the major cost model for the cost base. This will make the definition of the cost base clearer and more reasonable, and at the same time facilitate the later data collection as well.