Study On Industrial Maintenance Management Cost Control Based On The Theory Of Activity-Based Costing

Under the furious global competition environment, Industrial Maintenance Management (IMM), as an advanced mode of modern maintenance management, plays a vital role in enhancing the competition ability of industrial enterprises and then the cost control of it has important practical meaning. Presently, with the increase of equipment complexity and the development of automation, the proportion of maintenance cost has increased greatly. Improper maintenance would result in magnitude economic loss, which may be several, hundreds or thousands times of maintenance cost. At the same time, with the rise of Activity-Based Costing (ABC), the successful application of ABC in IMM will greatly improve the management level of IMM. This paper will establish the IMM cost control model based on the theory of ABC in order to reduce the maintenance cost, to increase the productivity and competition ability of the industrial enterprises.The main contents and innovations of this paper are listed as follows:1.This paper expatiates the development and rise of ABC and its superiority compared with the traditional cost management, dissertates the calculating design of ABC and the activity cost management theory.2. This paper puts forward the driving force of the development of IMM, establishes the four-layer theoretical structure of IMM, investigates the implement method of IMM——Industrial Management Model (IM3), researches the cost management levels of IMM in many countries and the extant problems.3.One of the main functions of ABC is to provide cost information for managers in decision-making. This paper analyzes a few of decision-making problems such as the choice of supplier, investment on equipments and the decision of the number of maintenance personnel, etc. 4. In this paper, IMM cost calculating and control model based on ABC are founded. Using the cost control model, we can trace the total maintenance cost back to various equipments, in this way, headstream cost control can be realized. Through a case analysis, we can see that managers can closely track the change of maintenance cost and we can decrease maintenance cost through the cost control of activities, thus increasing the competition ability of the industrial enterprises.