Research On Standard Cost Optimization Setting Method Of Iron And Steel Enterprises

With the arrival of economic globalization and the rapid development of innovative and high technology, the environment of iron and steel enterprises is also undergoing tremendous changes. Declines in the rate of profit is resulted, because of the excess capacity, continuous rising labor costs, reduced downstream demand, significantly decreased prices of steel and so on. Thus, the key point to gain an advantage in market competition is to control the internal cost according to its production capacity and product structures. However, the main methods to control internal costs is standard costing. As the multi-formity of product categories and the complexity of processing procedures, there are different kinds of costs and resources. Therefore, the setting of standard cost should also be refined, and the study on standard cost setting method for iron and steel enterprises has an important significance.Firstly, this paper studied the production process characteristics of iron and steel enterprises and the formation of production cost. Then analyzed the existing circumstances of standard cost setting method in iron and steel enterprises, and found the problems in reality. Finally, a complete set of standard cost calculation method is proposed, which can be helpful for cost controlling and provide method support for cost lean management in production process.To solve the problem, standard cost setting optimization method based on the relations between working hours and production cost was studied. A standard cost setting model was proposed with objectives to minimize product standard cost and differentials between actual standard processing time and ideal processing time simultaneously under the condition of product quality requirements and activity cost. Then the consumption values of each resource were calculated according to the historical data based on K-means clustering algorithm and the relation functions were fitted based on multiple linear regression analysis, which can improve the rationality and accuracy of standard cost setting.An improved ant colony optimization algorithm was designed to solve this model. An ant searching strategy based on space partition was established to overcome the precocious phenomenon of ant colony algorithm. Compared to ant colony algorithm with variable weight, the precision of proposed algorithm is better than the latter. Finally, using the actual cost data, the proposed method of standard cost setting was compared to the one applied in enterprises at present. The results of simulation experiment prove that the former have a better effect in improving product quality and production efficiency, and lowering the standard cost.