Research On Production Cost Optimization Of Tangshan Huatiancheng Ceramics Co.,Ltd

The production process of sanitary ware is complicated.Effective cost management can greatly reduce the production and operation cost and ensure the product quality,thus bring considerable economic benefits to the ceramic enterprises.With the strict environmental protection policy and the implementation of foreign anti-dumping policy,ceramic industry is facing great challenges,ceramic production enterprises must carry out effective cost control in the production process to ensure the profitability of enterprises.With the establishment of more and more ceramic production enterprises at home and abroad,the competition of ceramic products in the market has gradually changed from quality competition to price competition.How to survive and develop in such a competitive environment,it is important to establish a cost management system that can continuously reduce costs,improve product quality and increase enterprise profitability.Therefore,it is imperative for ceramic enterprises to strengthen enterprise cost management.Based on the theory of Value Engineering(ve)and activity-based costing(ABC),this paper analyzes the production cost of Hua Tian Cheng Ceramics Co.,Ltd.(Hua Tian Cheng Ceramics Co.,Ltd.)in Tangshan,and studies the production process and cost of the products,the important role of value engineering in controlling production process cost is put forward.This paper takes the production cost of the company’s three main products as the research object,analyzes the production process and cost with activity-based costing method,and starts with the cost analysis and function evaluation of the production process with the working procedure of value engineering,by using ABC classification and Value Coefficient method,the main value engineering analysis objects are determined as roasting,ball milling,sizing,releasing slurry and spraying glaze by machine.The target cost is68602.95 yuan less than the current cost.Finally,the paper puts forward some measures to improve the production process,such as baking,ball milling,grouting forming and machine spraying glaze,in order to improve the production efficiency and reduce the consumption,to improve the productionmanagement information,and to control the production cost through target cost management,all staff involved in cost management,through monitoring the operation process,improve product qualification rate,reasonable design workshop internal process,reduce unnecessary transportation cost increase,to enhance the company’s profit rate.In order to achieve the core competitiveness in the industry,and ultimately achieve the benefit of leading.