The Research To Improve SMC Cost Management's Implementation

Shipbuilding enterprises have to reduce their costs to gain the competitive advantages by cost management because of the increased competition. There will be more and more advanced and sophisticated methods of cost control, performance appraisal and motivation, along with the study in depth and progressing. When different types of enterprises use the previous mentioned methods, the mismatching of their own concept of the methods and corporate culture will occur to happen, which makes the companies cannot get any profits.This paper will sum up the impact factors which will influence the results of cost management implementation, by researching the problems arose in the standard costing implementation in a shipbuilding enterprise. The impact factors are:(1) Organizational Decision; (2) Organization Chart; (3) Standard Costing Design; (4) Responsibility Center Design and Performance Appraisal System; (5) Partners, in which the first four items are the impact factors of internal environment influencing cost management implementation results, the last one is the influences of external environment to the cost management implementation.This paper will advance five proposals to improve SMC's cost management system according to the aforesaid 5 factors. They are:(1) To gain the supports from the high level management; (2) Re-engineering the organization structure and responsibility center; (3) To reduce transaction costs through strategic alliances; (4) Adopting kaizen costing instead of standard costing; (5) Modeling new performance appraisal system for responsibility center.The prime features of this thesis are, in view of the problems caused by implementing standard costing in one specific company, to sum up analysis frame of the influencing reasons on cost management by means of inducing the accounting theories and case study, to draw the conclusion by analysis, and raise the improvement programs. The research findings of this thesis will improve SMC's performance by implementing the modified cost management programs, and it also could be a theory-practice reference to the other same type enterprise.