Study On The Cost Diffferences Of Solid Wood Furniture Legs Between Large Scale Furniture Enterprise And Small Outsoursing One

Along with the more and more elaborate social division of labor, outsourcing cost control has been the practical issue that furniture enterprises must be faced whth and solve, this paperselectes three kinds of typical solid wood legs, measures actural data in the practicalenterprise,and then makes the mathematical analysis, so it comes to conclusions as follows:1. The material cost, artificial cost and indirect expenses are significant factors whichmake some cost differences between large scale enterprise and small outsoursingenterprise.2. The differences in the cost of material:2.1. The degree of match between plate specifications and parts specifications hassignificant effect on the percentage of outturn, the higher the match degree the higher thepercentage of outturn. Such as: 01 leg under the condition of 150 batches lot, if matchingdegree increased by 7.42%, then the percentage of outturn increased by 7.42%, materialscosts decreased by 10%;02 legs under the condition of 150 batches lot, if the matchingdegree increased by 4.17%, then the percentage of outturn increased by 4.17%, materialscosts decreased by 5%.2.2. The size of production lot has significant effect on the percentage of outturn.Thelarger the production batch size,the greater percentage of outturn it makes if it is in acertion context.3. The differences in the cost of labor:The production efficiency in integrated production line is lower than in a professionalone.It is hard for intergrated firm to have large size of same production once a time,for ithas lots of orders and various types of products to ship one time.So the productionassistant belongs to each product arise,which calls longer labor time and higher laborcost.For example:When the production lot of leg 01 increased from 50 to 150, artificial costdropped from 25.86 yuan to 25.86 yuan, which makes nearly two yuan decrease in cost,which decreased by 7.2%.4. The differences in the cost of indirect expenses:There are enormous differences in organizational structure and enterprise scalebetween large scale enterprise and small outsoursing enterprise,and one among these issmall ones’ lacking of design, research and development, and other production assistance orservice institution, so the cost of indirect expenses converts to each yuan can down to 0.03 yuan,while it reaches to 0.07 yuan when it is in large scale enterprise.