The Model And Research On The Manufacturing Cost Budgeting System Of Valve

With the booming automobile industry, the consumptions of autos is rapidlyincreasing, especially in the limousine field. As we know, a car is no longer a luxuriousdemand for a average family, which accelerate the competitions in this domain.Simultaneously, the auto parts industry as the supplier of auto industry has confronted amore heavily competition due to the dropping of vehicle price and the rising of costsuch as human resource and material. In order to maintain the profits, enhancing themanagement of cost, specifically for valve, is an emergency. The key point of costmanagement is cost budgeting accurately for the basic element of cost analysis.This paper aims at the cost budgeting of valve. A method of cost budgeting basedon activities is proposed in this paper and indeed it performed well in cost of valve.The reused data in valve cost budgeting is common since fewer differences amongthe structure of valve. According to the financial data, manufacturing, salaries andmaterials account for major part of valve cost, which result in the traditional method forcost and the spirit of method for cost budgeting based on activities can be used. A newmethod of manufacturing cost budgeting based on activities is put forward and theapplication of that is good. Finally, the accurate cost budgeting is achieved, which offerthe precise data for cost management, processes optimizing and reduce the cost ofvalve.Under the assignment of activities and reason for fluctuant cost, the cost-driver rateis worked out and reserved referring to the arrangement of the cost. The correspondentwork, cost-driver quantity, the working time and that sort of things can be picked outand the cost of valve also can be budgeted though the cost-driver rate in the data base,while the process document of valve is generated. The case of highly similarities withthe existed data can use the relevant data to budget the cost according to comparing thesimilarities, when the processes of valve have not been worked out.Based on the current situation and the needs of C company, a cost valve budgetingsystem has been established including the architecture of function modules. The top ofmodel is constructed by IDEF0. At last, this system has been tested in C company and itworked well.