Study On Production Cost Control Of Auto Parts In Fawon

Since 2009,China's auto production and sales have continued to grow,and in 2018,it has been ranked number one in the world for ten consecutive years.However,in the passenger car market in 2019,there was a double-digit negative growth.From the related analysis,in the next few years,the automobile market will still be in a downturn.As an important part of the automotive industry industrial chain,auto component manufacturers are facing increasingly fierce competition among auto component manufacturers in the context of sluggish vehicle sales.In addition to some parts manufacturers with core monopoly technology still maintain a relatively high premium level,many companies have entered a stage of fierce cost competition.For auto parts manufacturers,in the face of huge market competition pressure,maintaining cost advantages is an important means to resist market risks.Therefore,it is of great significance to study its cost control measures and methods to help enterprises find out the current cost control problems and propose solutions and suggestions.This article takes Fuang Auto Parts Company as the research object to study the cost control of the products produced by the company.Fuang Auto Parts Co.,Ltd.mainly produces heat management system components such as radiators,condensers,and air conditioners.It is a joint venture between Fuao Auto Parts Co.,Ltd.and Hanon Group.With the integration of multiple cultures,Fuang's management thinking and philosophy are different from those of private enterprises and state-owned enterprises,and its cost control is also unique.Currently,the company is facing severe cost control pressure due to market conditions.Therefore,the company is researching technological innovation and cost control.This article hopes that by studying the company's cost control,it will help the company to successfully control the cost,and summarize and promote it to other companies to practice,and ultimately achieve the purpose of cost control.The author of this article found that the company had many problems in product cost control through field investigations and surveys.First,the company's high procurement cost of external parts directly affected the direct material cost beyond expectations,and the cost control goal could not be achieved;second,the company's low utilization of tooling and molds caused too little fixed cost investment recovery to meet expectations Level;the third is the company's quality control problems,which leads to an increase in quality maintenance costs;the fourth is the company's talent training and talent construction,which causes experienced and capable employees to be retained,and the new employee training cycle is long,resulting in long training cycles,Low production efficiency,frequent quality problems.In the end,the cost of production remains high.The author of this article,through the research of a large number of literatures,analyzes in depth theories of TCO,performance management,lean production,and talent management,etc.,and puts it into practice in Fawon Auto Parts Company,and finally finds a way to solve the above problems.First,reform the construction of the procurement system,optimize the procurement function,stimulate the enthusiasm and vitality of the procurement engineer,and take the initiative to shoulder the burden of procurement costs.Second,it is proposed to improve the product design,increase the generalization rate of products,and increase the reuse rate of tooling molds.,Turning special tooling molds into universal tooling molds,activating sunk costs;again,through quality constraints and supplier performance management,to improve product quality and reduce quality maintenance costs;Finally,for talent construction,the organization established a talent management system and Knowledge management systems,etc.,on the one hand,provide measures and methods for leaving outstanding talents,on the other hand,establish an efficient training and learning system,and build core knowledge,professional knowledge and other organizations into a new knowledge management system.