Cost driver analysis to gain a strong competitive advantage in lean cost management

Cost driver analysis is to explore the cost drivers to find the cause of waste, with the lowest value chain cost as the goal. The traditional cost http://www.aliyun.com/zixun/aggregation/13848.html "> Management mode only focus on the cost management related to the production process after the commodity is put into operation, ignoring the cost management of commodity development, design and logistics, Greatly hinders the improvement of enterprise's competitive ability. The purpose of mining cost drivers is to find out the source of the non value-added operation, so as to effectively eliminate the corresponding non value-added operations in order to increase the value of the enterprise. Therefore, activity-based costing management is oriented by customer value increment, integrates lean purchasing, lean design, lean production, lean logistics and lean service technology, combines lean management thought with cost management thought, and forms new cost management concept-lean cost management. It from the procurement, design, production and services to the full control of enterprise value chain cost, in order to achieve the best value chain cost, so that enterprises get a strong competitive advantage.
Provide relevant information on cost control in a timely and effective manner. Activity-based Costing Management regards the enterprise as a series of work chains designed to meet the needs of the customers, and the enterprise commodity condenses the value of forming on each operation and eventually transferring to the customer, and the work chain is also displayed as the value chain. Thus, the focus and emphasis of cost management are shifted from traditional goods to homework, the job as a costing unit, a batch of products or services consisting of the work chain or value chain as the object of the allocation of costs, so that not only can reasonably allocate a variety of manufacturing costs, to provide more objective cost information, but also through the value chain analysis, Cost driver analysis, tracing the source, continuously improve the operation mode, rational allocation of resources to achieve the goal of continuous cost reduction.
A cost driver is a metric that explains the characteristics of a job that takes place, reflecting the cost of the job or the amount of work consumed by other jobs. Cost drivers can be divided into three categories.

① Transaction cost drivers. Measurement of the frequency of operations, such as the number of equipment adjustments, orders and so on. The transaction cost drivers can be selected when all the outputs are in agreement with the requirements of the operation. Take the home appliance manufacturing Enterprise as an example, arrange a certain type of refrigerator to produce or handle the same type of product order, the time and energy needed to produce the number of products or orders.

② continuity cost drivers. Reflects the time required to complete a job. More accurate metrics should be used if the resources required by different quantities of products are significantly different. For example, a product with a simple process has a shorter device adjustment time each time, and the process of complex products required to adjust the equipment for a long time, if the equipment to adjust the number of times as the cost drivers, it may lead to the calculation of the cost of the operation is not real, at this time to adjust the equipment required by the timing of the cost drivers more appropriate.

③ accuracy cost drivers. Directly calculates the cost of resources that are consumed each time a job is executed. When there are significant differences in manpower, technology, resources and so on in each unit time, it may be necessary to use the precision cost drivers to directly calculate the cost of the resources consumed by the operation.

Yongkaida APs, to solve the scheduling problem that cannot be satisfied by ERP Http://www.yukontek.com,APS Production planning management expert 400-076-7600,021-68886010