Research On Cost Control For Manufacturing Enterprise Based On The Theory Of Constraints (TOC)

Manufacturing industry is the pillar industry of the national economy. It has a pivotal role in the economic and social development. After 30 years of reform and opening up, China’s manufacturing industry has made remarkable brilliant achievements. Many products output has ranked the first in the world, such as appliances, clothing and so on. China-made products are also around the world.The biggest advantage of low prices and competition once the capital of China-made, inexpensive due to lower production costs. In recent years, rising domestic prices, labor costs, which gives a price advantage in manufacturing a huge impact. Meanwhile, the world is moving towards integrated manufacturing, information technology and professional direction, production efficiency is rapidly increasing. Faced with an increasingly complex world economic situation, how to win and get the most favorable competitive advantage is critical in the production management. Chinese manufacturing want to continue to maintain a leading edge in the international arena, to achieve sustainable development of the national economy, we must unswervingly continue to focus on cost control, to seek effective ways to reduce costs and new economic growth point.Cost control theory is a product of social and economic development, especially under conditions of market economy and free competition in the industry, cost control for the survival of enterprises, sustainable development and scale plays a vital role. If companies ignore cost control, the result is often caused by income over expenditure, years of losses, and ultimately unsustainable business had to go bankrupt or out of business. In an increasingly competitive international market today, the company has only continued to strengthen cost control, can you stand and get a place in a market economy.In recent years, in order to improve enterprise management level and market competitiveness, manufacturing industries have drawn a lot of advanced management theories, such as total quality management theory, theory of Lean, and Six Sigma management theory. But the effect is far from satisfactory. The reason, management theory Hundred Flowers and relatively independent of each theory, applied economic situation and industries have different emphases. When a single management theory is not sufficient to deal with the problems of enterprises, the enterprises will gradually be multiple management theory. But at the same time when a number of theoretical practice, in order to enable them to play their respective advantages instead of the shift in the role, then you need a more systematic, complete theory put them in series synergistic effect play.Meet the needs of economic development of the situation, in the 1990s there was a new management theory --TOC theory. TOC theory has a unique, simple, practical, compatibility and systemic features, which are a large number of European countries quickly enterprises, social organizations and other uses, and in different areas actually made obvious benefits, then TOC theory began to be more An increasing number of Chinese scholars and business concerns.In this paper, the economic situation at home and abroad to start manufacturing on the establishment and development of the theoretical system TOC brief description and analysis of the status of domestic manufacturing enterprises to control costs, based on the proposed use of TOC (Theory of Constriction) the basic principles and methods of the theory of looking At present, the cost of domestic manufacturing enterprises to maximize control of the weak links in the chain, forming a control system based on the cost of production theory of TOC, TOC theory explain how to make business with a minimum investment, maximum efficiency, the most frugal costs and achieve production efficiency to maintain its dominant position in the market economy competition.This paper’s innovation are:to promote the application of TOC theory, it can be applied in manufacturing cost control management practices; further the use of advanced management theories change management in China cost the existing problems; cost management to broaden horizons and promote financial management improved.