Research&Development Of Manufactuirng Cost Management System Based On ABC Method For Complex Products

With the continual development of market economy, needs of customers has already hadbeen transformed from traditional characters of simplification, immobilization and modelinginto currently personalized and diversified ones. Facing such sudden change of needs fromcustomers, current enterprises especially those manufacturing enterprises should improvetheir abilities to respond quickly to market change, thus they will have power to better andfaster meet requirements of customers. At the same time, in the era of global economicintegration, manufacturing enterprises themselves and external circumstances have brought ahigher requirement on them, which are represented on five aspects: T(Time), Q (Quality), C(Cost), S (Service), E (Environment).Undoubtedly from such kind of view, Cost Managementplays an important role in improving the competitive strength of enterprises. As to discretemanufacturing enterprises, the proportion of manufacturing cost in the whole product cost isincreasing, so how to timely and accurately calculate the manufacturing cost of manufacturingenterprises becomes a focus of attention. Then ABCM seems to be a good solution.This paper adopts the research method relating theory to field study, which tends to go indepth about advanced ideology of cost management, also to compare advantages of thoseideologies, thus combining with the characters of discrete manufacturing enterprises and theABC method, we will have the power to design and develop our systems. Activity-BasedCosting method is individualized method for cost calculating, it is based on the activities toidentify, calculate and allocate the activity costs, and finally to compute the costs related tothe products. Cost calculation is a central part of cost management; also it is a basis for thefinancial department to handle daily work like Cost Prediction, Cost Planning, Cost Controland Analysis. Therefore timely and accurate cost relating data is quite important for theadministration and supervision authorities to make decisions.In the context of a CNC machine tool manufacturer in Changzhou, This paper analyzesand summarizes practical problems existing in production by several times investigatingproduction processes of this company, and analyze in detail about the constitutions of shopfloor manufacturing cost according to the requirements from financial department. Meanwhile,on the base of investigation and analyze, I designed calculating algorithm for every cost item,and under the frame of MES, established a model of shop floor manufacturing cost based onABC. Finally, with this model, I designed a costing system for shop floor.This system bases on ABC theory as its core, uses C/S body system, and PowerBuilder11.5as the development platform, Microsoft SQL SERVER2008as back-end database,WINDOWS XP as the system running environment, and at last I develop a proper shop floorcosting management software under the MES circumstances. This system realizes thefunction of collecting, processing, storing and managing all the cost data through differentmodules, and via various reports, feeding back cost relative data to administration andsupervision authorities, thus ensuring the timeliness, dynamics and exactitude of cost data.