Cost Control And Improvement Analysis Of Taidian Company

Since material cost and labor cost gradually increased,TD Company,one of OEM factories,has sharply dropped on gross profit and the similar companies like TD Company are surviving in more competitive OEM industry.Cost management and control is a most important strategy for all of OEM factory stand in the market and keep competitive.Cost controls mainly reflect on three aspects which include that to avoid undesirable cost,cut the expense necessary,and get back more from happened expense.These studies is focusing on research of TD Company and eventually find improvement method and solution in order to reach the target of product cost down.For this purpose,this study analyzed recently OEM enterprises hard situation with the instruction of project cost management,domestic and international company cost management,and author's years of experience in cost management.While reach short term target,this study raised a solution for decreasing the product cost by long term.For example,replace labors by auto production lines,lower the process cost by improving vendor's manufacturing flow,decrease raw material cost through join in design and replacement materials propose,and packing material recycle or full utilization of waste products and so on.Finally,this study re-evaluated the improvement results and make sure the solution gets executed in future.This paper can be a reference as an example of cost management in OEM industry,also as cost down solution to other similar types of factories.