Research On Production Cost Management Of Chengdu C Company

The rapid development of Chinese enterprises in the past ten years thanks to the domestic cheap labor,however,with the arrival of the aging era,as well as the globalization,this advantage began to disappear,the labor cost is no longer cheap.What more,the competition among enterprises is more and more intense.In order to deal with these threats and,keep the company's competitive advantage,more and more enterprises began to pay attention to the reduction of production costs.Chengdu C company,as a military enterprise,because of the low materials cost,and the high threshold of military industry which one must need to enter to this market,therefore,there are fewer competitors in this industry,the gross margin is maintain high level,which makes company ignore cost management.With the national strategy,civil-military inosculation,more and more private enterprises have participate in this profitable market,as a result,Chengdu C company's profit is getting thinner.In 2015,general manager have launched the "strong solid base" business strategy,expect to reduce production costs,maintain company's share in the industry market,win a stable development.In this paper,the production cost management of Chengdu C Company is taken as the research object,mainly from the aspects of quality management,inventory cost and improvement of production field.Using the method of on-site investigation,comparative analysis and literature review to analysis company's situation.This paper first introduces the current situation of production cost management of Company C,summarizes the existing problems in management,including: high inventory cost,wasteful situation,poor cost control and low quality management,and then summarizes the reasons for these problems,formulate and carry out improvement programs,such as the implementation of 5S management,QCC activities,the implementation of TPM equipment management,adjust staff's incentive methods.Finally,the effect of the implementation was confirmed.Equipment failure rate was significantly reduced,the product quality level has been greatly improved,reducing inventory costs,waste.It raised the cost improvement consciousness of the whole staff,set up a new performance appraisal method,improved the morale of the staff,and finally realized the reduction of the production cost as a whole.In this paper,through the research on the production cost management of Chengdu C Company,it aims to tap the method of improving the cost of the company,at the same time enhance staff's cost consciousness,eliminate the waste in the process of production,make the cost control deep into each process,every product,everyone,to ensure the effective implementation of comprehensive cost control,thereby enhancing the company's market competitiveness.