Applied Research On Flexible Production Base On Cost Control For L Company

After global economic crisis in the year of 2008,the uncertainty of economic situation and customer demand become larger.At the same time,the market that companies are facing becomes more competitive.Apparel industry suffered more from the wide application of Internet technology and rapid growth of "Fast Fashion" brand clothing.Label manufacturing industry,as the accessories supplier for Apparel industry including clothing,shoes,and hats etc.is facing the key challenges with larger uncertainty of customer demand;shorten order cycle time;varied product and price competition etc.Therefore,company expects to satisfy customer's requirements flexibly as well as optimize the cost,so that it can enhance the competitiveness and keep progress continuously.L company mainly provide labels to the worldwide apparel manufacturing bases of many Brand Owners and its head office is the leading products and related solutions' provider in the world.This applied research will focus on label's flexible production base on cost control for L Company in the view of operation management.Firstly,to understand the background and purpose of this research as well as current research status and main achievements;to introduce the key theories of Operation Strategy,Theory of Constraints and Mass Customization;The research process follows with “problem identification – cause analysis – solution proposal” and key methods are " investigating analysis " and " quantitative analysis ".Secondly,to introduce the basic situation of L Company and analyze the key challenges of uncertain demand,shorter order cycle time and increasing cost,and identify the key problem that L company faced is lack of order flexibility.Next to analyze L Company's Customer Order Decoupling Point and production model;further analyze the main cause of order flexibility loss and key factors of flexible production with critical equipment capacity,labor,working hours,finished goods' stock and outsourcing capacity;meanwhile to make analysis for cost of flexible production from direct production cost,finished goods' stock cost,shortage cost and outsourcing cost,then summarize the scheme selection for flexible production base on cost control.After that,to propose the scheme with increasing capacity from optimizing working hours and outsourcing capacity to reduce the capacity loading rate in order to improve capacity of flexible production;as well as pointing at the major reason for cost control,suggest to reduce outsourcing unit price from bargaining and consummate management policy for outsourcing suppliers.Finally,to make the conclusion.