The Research On A Company’s Production Cost Control Problem

A company is a garment foreign trade enterprise located in Xintang, Guangzhou, it is a small manufacturer. Since 2010, A company’s material costs and labor costs rising every year,cost control is poor, production cost out of control, bring great pressure to its running. Purpose of this study is to find A company’s production cost control problems, put suitable cost control measures, and help it to reduce production cost, improve its overall level of cost control.Based on previous research of cost control at home and abroad, compare A company’s running with the whole textile industry, I analysis A company’s organization structure and production process as basis, focus on its production cost control status, through A company’s production cost data from year 2010 to 2013, use PDCA cycle to find its production cost control problems, namely are lacking reasonable cost estimating method, data is not accurate;material procurement plan is not accurate, the executing process is lack of standard control with no cost-saving awareness; arrangement of production is poor, information flow is not smooth with wrong transmission; actual cost data may be distorted and so on. Causes of these problems through questionnaires and interviews result in A company’s lacking of cost control concept, staff quality is not high, production cost control method is not comprehensive and original documents’ information has error and omission.To solve these problems, I propose an improved solution to fit A company’s cost control status. Use adaptability and flexibility, feasibility, comprehensiveness and appropriateness as principles, use target cost, standard cost, PDCA cycle as basic method, according to its weak link in production cost control, propose an optimized PDCA cycle control management system, from the beginning of cost estimating to the end of actual cost checking, fully improve every process of A company’s production cost control, combine with upgrade manager’s cost control sense, improve staff quality, and ensure source document information is true and complete as secondary measures, all-round help A company to overcome its own production cost control problems, to promote A company’s productivity and profits, bring it into good production cycle with continuing operation.Finally, summarizing the results of this study and proposes its limitations in the conclusion.