The Research Of Slp's Introdution Of Amoeba Operating Based On Target Costing

As a large modernized manufacturing enterprise, SLP has the bestequipments of the world and also has amount of skilled staffs. And, with thestrong technique support from the head quarter, it also has competitiveproduct with both high quality and advanced technology. However, theworld's best equipments bring to SLP not only high performance but alsohigh cost. If SLP does not make any measures, the high cost will definitelyaffect its market competition. Therefore, SLP has been seeking and practicingrefined target costing management since its establishment.With the practice of target costing, SLP has got very nice result in costreduction and efficiency improvement. However, the achievement is more orless by coincidence as it will not be sustained if the environment is changed.And also, the characteristic of target costing is to realize the set profit but notto seek more profit. This does not meet the enterprise's target of realizing themaximum profit. Target cost does not mean the best profit.To maximize the profit, the enterprise must minimize its cost. This canonly be realized by fully developing the talent of all staffs, that is, to realizefull participation in management. KYOCERA Corporation of Japan is themost representative company to carry out full participation management.Amoeba operating, established by Inamori, the founder of KYOCERA, fullyfollows the operating target of a company, that is, to maximize the revenue, minimize the cost and maximize the profit. By separating the company into alarge amount of amoebas, KYOCERA has trained a lot of amoeba leaderswith operating awareness.In this thesis, the writer first introduced what is Amoeba operating,including its thoughts and purpose, the cost controlling method, thecalculating principle, the difference from target costing and its application.Then, by analysis of SLP's current situation of target costing management,the writer analyzed whether Amoeba operating could be carried out in SLP ornot and simulated the detailed method. At the end of this thesis, the economicbenefit for SLP to introduce Amoeba operating was analyzed.