Research On Production Costs Of PP Company

As the overall national economy has been into a "new normal" occasion, the industrial economy has been to run difficultly in the low position, enterprise’s survival environment has become more serious and complicated, and the competition between enterprises has proceeded to the stage of incandesce. As the most important part of manufacturing cost, production cost plays a crucial role definitely in the enterprises on the scientific and rational management and control to reduce costs, improve efficiency, and enhance the competitiveness of the market management. PP Company exists many problems in the production cost management at present as to its management idea is the kind of old backward management model which has been passed down from the former state-owned enterprises, especially the production cost management still follows the big pot model. Through analyzing the present situation of production cost management of PP Company, the aim of this paper is to find out the various problems existing its production cost management, use a combination of qualitative and quantitative analysis method, introduce the internal simulation market operation management to construct a suitable system management method to production cost of PP Company, and ultimately promote the management model which is a process with a unified understanding, full participation, the implementation of the responsibility clearly, rewards and penalties of appraisals in place includes pre-product, in-product and ex-product control of cost in order to reduce its production cost, improve its quality, and increase its efficiency. In addition, on the design of production cost management of PP Company, especially the introduction of market-oriented operation management in state-owned enterprise, the research also has the value of reference to the other large manufacturing enterprises.