The Research On Whole Process Cost Control System Optimization For Polymer Elastic Element Product Of Company A

The effective management and control of product cost is an important way for anenterprise to achieve cost reduction and profit maximization. The establishment of asound cost management system is the fundamental guarantee to realize cost-effectivelymanage and to improve the market competitiveness. Thus, this paper will carry out theresearch on the cost management system through theory summary and case analysis. Inthe theory summary, the international and national research status on cost control isreviewed and the whole process of cost control and processes is described in detail.Then the paper raises that, the product life cycle cost control and supply chain costcontrol are the cornerstones of the entire process cost control system.In the case studies, the paper takes the cost control of polymer elastic componentproduct of company A as the research subject. Firstly, the development status and trendof Company A is introduced, and the changes of internal and external environment arepointed out to bring new challenges for the whole process cost management of polymerelastic element products. Then, the current various cost control problems are analyzed,include the consciousness of whole process cost control is not strong, the relatedmechanism of cost control system is not perfect, the beforehand prevention of costcontrol is inadequate, reduced production costs to encounter bottlenecks, theinformation systems can’t provide efficient support, the incentive and assessmentmechanism in later stage is not completed.In order to solve these problems, the paper establishes a whole process cost controlsystem. In order to solve these problems, the paper establishes a whole process costcontrol system. On the basis of guiding ideology, objectives and fundamental principlesof optimization,4key aspects are put forwards to constitute the whole process costcontrol system, the establishment of target responsibility system of cost control, theestablishment of sound risk early-warning mechanism, the improvement of informationplatform, Establish cost performance appraisal system. Moreover,8strategies areproposed to promote the optimization of cost control system, reduce the developmentcosts, reduce the procurement costs, reduce the production waste, reduce the labor costs,reduce capital occupation, reduce logistics costs, reduce the marketing costs, and controlthe daily expenses. Therefore, to guarantee the effectively implement of whole processcost management system, a good cost control organization and environment should be built, the standard operating guidelines and reference databases should be established,the internal pricing transfer mechanism should be improved, and specific cost controlcommittee should be set up to support and advance the optimization of whole processcost management system in Company A.In conclusion, the current research of the whole process of cost control optimizationprogram is on the basis of existing data, and has its feasibility. It enriches the domesticresearch on the manufacturing cost management. Although the proposed policies andmeasures are not yet applied and implemented completely, and need empirically test andperfection, it still provides useful experience for the same industry or the same type ofproduct to carry out the product cost control.