Research On Improvement Of Production Cost Control In Nanyue Fuel Injection Systems Co., LTD

With the rapid development of China's economy and the transformation and upgrading of the industry,the development of fuel injection system industry is facing challenges in the era of increasingly fierce market economy.Nanyue Fuel Injection Systems Co.,Ltd is one of the most influential enterprises in the domestic fuel injection system industry at present.Its fuel injection system production capacity and sales volume have long occupied the top three positions in China,carrying the national flag of fuel injection system localization.The market competition is becoming more and more fierce.In recent years,the company has increased its cost control efforts to enhance the market competitiveness of products.According to the data of the annual report from 2014 to 2018,the company's production cost shows an obvious upward trend.How to reduce the cost,we need to research and innovate to find an effective cost control method suitable for the company and even the industry.This paper takes the current situation of production cost control of Nanyue Fuel Injection Systems Co.,Ltd as the research object,analyzes the problems existing in its production cost control management,and combines the characteristics of the industry where the company is located,makes a thorough and comprehensive study on its production cost control system by using the theory and method of modern cost control management.By analyzing the organizational structure,product and production process flow,cost composition and production cost control status of Nanyue Fuel Injection Systems Co.,Ltd,the paper points out that the existing problems are: weak awareness of cost control,insufficient management of standard cost accounting,high manufacturing cost of finished products,lack of cost data platform,etc.In view of the existing problems,using the theory of standard costing and activity-based costing,the improvement scheme of production cost control is put forward.Through improving the awareness of cost reduction of employees,improving account and analysis of the standard costing,improving material cost control,improving labor cost management,strengthening equipment management,and selecting appropriate ERP system to control production cost.Through the establishment of cost control organization,the establishment of cost management and control system,the replacement of ERP system to implement the improvement plan,and at the same time in human resources and capital protection,the company's costcontrol has achieved good results,economic benefits have been greatly improved,the company's competitiveness has been further enhanced.Through the research on the improvement of production cost control method of Nanyue Fuel Injection Systems Co.,Ltd,this paper hopes that the company can establish a long-term mechanism of production cost control and management,and also hopes that the research results of this paper can provide reference for other fuel injection system manufacturers to carry out effective cost control.