Cost Management Method Analysis For MTO Type Food Machinery Process Company

The large profit of Chinese food processing market attracted more and more domestic and foreign food machinery processing company entered due to high increase in food processing market and anti-monopoly law was issued in2008in China.The food machinery processing company adopted make for order (MTO) type for adapted more and more competitive market and variable customer request. It meet customer request under company profit. The company successful in the market depend on it can product the customer’s production or not. How to supply the rapid and accuracy quote for customer and production cost control are the two key factors decided company can get order or not and production profit.The paper researches the cost estimate and control system of T Company and analyse the shortcoming of it and develop the OPF (One piece flow) cost management according to food processing modular design feature.The way put forward that decomposes module to standard parts by WBS method, then define every day’s work task according to production process and standard parts’ time, final made the production process as OPF. It decomposes production to daily work, and accumulates daily work’s cost for make sure the standard cost baseline for advance the cost estimate accuracy. It uses the EVM method under it had standard cost baseline. It compare the actual package’s material quantity with standard package’s material quantity make sure the production cost status in order to cost control forecast and dynamic. The OPF cost management method not only makes sure that company can fast respond to customers’ enquire in order to get the order but also simplify company cost management. Final passage use one production cost management case of T Company for verifies the method is feasible and effective.