The Research On OEM Company Production Process Cost Inprovement Of The DP Company

In recent years,OEM enterprises,especially the 3C type enterprises,being in excess production capacity,result in focusing on cost saving although their business strategies are the lowest cost.DP company is basic on business oriented,and at the same time facing on the needs of customers to reduce the cost of 3%-5%per quarter.Facing the increasingly fierce competition in the domestic and international market environment,undoubtedly the definitive factor is the lowest product cost.At present,DP company uses the traditional cost method which ignoring the intrinsic relations of the production cost,resulting the unreasonable allocation of indirect cost and distorting product cost information,thereby affecting the company’s decision.This paper combines normative research and case analysis method.Through looking for information and surveying,I analyze the DP company’s product manufacturing process,production cost accounting and the problem.On the basis of discussing the necessity and feasibility of the application of ABC in DP company,this paper analyzes the implementation process,content and effect of activity-based costing method in DP company.On this basis,it makes a detailed analysis of DP company’s production decision,product pricing decision,product design decision.Through the application research,this paper thinks that:compared to the traditional cost method,activity-based costing can make the production process cost information more reasonably,clearly,scientifically.Take DP company as an example,the difference rate of the unit cost between the two cost method is about 10～33%.ABC provides the production process cost accounting method is more scientific for the enterprise,it can provide the basic conditions for reasonable design,scientific products pricing and efficient production,which is for OEM enterprises to quickly capture the market early and to obtain higher bonus.Based on the ABC method to improve the production process cost of DP company,the design and optimization of automatic process is the most important scientific method.Automation can directly reduce the direct labor costs per unit of product,improve the production capacity of the product,and indirectly reduce the cost of indirect costs,Through automation process improvement,DP company cost down 20-30%.This paper also provides reference for the OEM foundry enterprises,especially the traditional 3C enterprises to implement ABC method.