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Zhejiang Guoyao Aluminium Co., Ltd.

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Quantitative Management aluminum processing costs and improve efficiency

Present situation and cause an aluminum processing this quantization

Aluminum processing cost refers to quantify the cost of the formation process, their advance planning, budgeting and developing coefficient goals; matter of guidance, restrictions and supervision, to detect and correct deviations; ex post evaluation of the analysis, summarizing and improved Based on the revised cost targets and establishing a series of activities. In short, the cost to quantify the actions and measures for the realization of aluminum processing enterprise production and management objectives and actions taken, including cost projections, cost planning, cost management, cost accounting, cost assessment and cost analysis of six aspects, it's the ultimate goal is to try to consume a smaller maximum economic benefit in exchange [1].

1.1 aluminum processing costs to quantify the cost of the status quo of traditional products quantization target limited financial information, do not provide information on non-financial resources, operations, products, raw materials, customers, sales channels, marketing and sales management personnel needs, difficult to play to provide adequate information for aluminum processing enterprise production and business purposes.

1.1.1 quantify aluminum processing costs due to poor awareness of the impact of various factors, aluminum processing enterprise cost management prevalence of "re-post light beforehand, heavy static light dynamic, short-term light weight long-term, heavy quantity rather than quality, tactics light strategy "ills. Aluminum processing enterprises affected by "costs can not be further reduced," the dimensions given type of bondage, accustomed to the traditional ideas to the problem, do things, rely on the completion of output, expand investment, ignoring the aluminum processing enterprise is profit maximization as the goal economic organizations, and to quantify the cost of having to pursue the limits of the basic characteristics [2].

1.1.2 weakened position to quantify the cost of aluminum processing in cash operating results of the assessment can not be scientifically and realistically reflect the true cost of quantization levels, be fooled by the moment, "large-scale, high-value, high-efficiency" false prosperity, look at one o'clock efficiency level of benefits do not ask the source? Only knew how much profit or loss? I do not know where the profit and loss? Grab effective cost management to leave the practice is causing extensive management, inefficiency, hidden losses serious, slow development of the main crux.

1.1.3 Accounting aluminum processing costs quantization distortion in the modern manufacturing environment, the proportion of direct labor costs declined significantly, a substantial increase in the proportion of manufacturing costs, yet the cost of using mass aluminum processing quantify weeks treatment (Southwest Aluminum (Group) Co. Ltd., Chongqing Jiulongpo 401326)

Abstract: Aiming at the aluminum processing enterprise cost management status and problems, conduct a comprehensive analysis of the causes put forward an urgent need to strengthen cost control measures and quantitative measures to quantify the target cost by reducing costs, saving energy, the cost of implementation to quantify initiatives to open up quantifiable cost effective way to build a conservation-oriented enterprises. Keywords: Resources; accounting; financial; control; quantify costs;

Week in science: aluminum processing to be cost calculation method to quantify the cost of the system would have an unreasonable phenomenon, direct labor costs to allocate a growing proportion of manufacturing costs, ignoring the actual cost of different quantities of product differences, one is thinking of the accounting officer do not pay attention on the other hand, because of personal gain or interests of a small group of poor profit motive driven artificially adjusted cost figures, fabricate cost data, hidden losses caused serious virtual surplus real loss; some aluminum processing enterprises for tax evasion , false purchase invoices deductible VAT, inflated costs to pay less income tax, the basic work is not solid, it is difficult to accurately accounting product costs, and thus disclose the cost of quantitative information is not accurate.

1.1.4 quantify the cost of internal failure cost index is a comprehensive aluminum processing enterprise production and business activities, involving all aspects of management, but also involving all levels of staff. There is a bias in the aluminum processing enterprises, the cost of quantization as a financial officer, duties few managers that "cost-effectiveness" should be the responsibility of the business leaders and finance staff, and the staff of the workshop, department, team only seen as a producer, resulting management costs do not understand technology, understand technology do not understand finance, the majority of the workers for what costs should be controlled? How to control? Think Ganhaoganhuai a kind, do not feel the pressure of the market, cost control initiative can not be mobilized, serious waste, scrap can not be fully utilized, can not repair repair reused, apply for re-purchase. Body established to quantify the cost of mistakes, losing to quantify the cost of management groups, the cost is difficult to quantify the true nature of work to achieve results. Aluminum processing enterprises over-reliance on the existing cost accounting system can not meet the need to quantify the cost of implementation of a comprehensive, can not adopt flexible cost methods, making the cost of a simple quantization caught in order to reduce costs and reduce the cost of the cycle, can not provide the necessary decisions the correct information is not thoroughly reflect the course of business, does not provide information on various aspects of the operation cost, thus misleading the aluminum processing enterprises to develop business strategy [3].

Some idea of the cost of the lack of market 1.1.5 aluminum processing enterprise, regardless of market demand for the product, unilaterally increase production to reduce product costs through the backlog of inventory, the cost of the production process occurs transfer or hidden in inventories, increase short-term profits. The reasons for this phenomenon lies in the lack of market concept to quantify costs, resulting in errors cost information appears on management decisions, cost quantification touch with the market. According to cost behavior theory, the total cost of aluminum processing enterprises decomposed into fixed and variable costs of two parts, the cost of change is equal to the product cost and also the total amount of the unit variable production: namely: TC = FC + VC × Q then when fixed costs FC time-invariant, the output Q will undoubtedly increase the unit cost obtained (TC / Q) is reduced, constant, increased profits in the selling price SP. The theory of market demand caused by these enterprises set ignores the blind increase, although improved short-term profits, has led to a backlog of inventory. Its failure lies in the "cost behavior theory" and "Volume-Profit CPV theory" intentionally disconnected, CPV most important marketing theory equilibrium assumption does not consider, namely: to sell production quotas, market guide [2].

1.1.6 Cost inadequate supervision of many aluminum processing enterprise incentive pay attention only to quantify the cost of the production process, ignoring the supply process and to quantify the cost of the sales process, only pay attention to quantify the cost of post-commissioning, ignored in the pre-production design and rational organization of production factors the cost to quantify the cost of the lack of scientific plans, serious; in particular cost accounting, only focus on financial accounting, cost accounting lack of management focus on cost accounting, while ignoring the accounting process of product design costs and cost of sales . Quantify the cost of enforcement and inspection mere formality, the limited scope audit, sweeping to the point on behalf of the face, the lack of integrity and comprehensiveness, quality of execution is also the lack of a reward is a degree of reward and punishment. Although some aluminum processing enterprise also has a number of rewards and penalties, but did not fully institutionalized, combined with no corresponding inspections and examinations, thus weakening the implementation of cost consciousness and alertness to quantify, therefore, to quantify the cost of aluminum processing enterprise liability division, supervision, incentives and so need to be further clarified.

1.2 Causes of the quantized aluminum processing

The power comes from the need to quantify the cost of aluminum processing enterprise internal management, but from the current situation, many aluminum processing production costs, limited to the compliance with and enforcement of financial regulations "relevant cost Regulations", focusing on cost control macro needs, while ignoring the cost to quantify the important role of production and operation.

1.2.1 failure to adapt to changes in the external environment as the shift from a seller's market structure to a buyer's market, product cost structure also will be changed, the proportion of production costs decline, the proportion of liquidity costs continue to rise. Quantify cost too much limited to the production areas to reduce direct materials, direct labor and manufacturing overhead costs as the primary means to quantify, ignoring the cost of product development, sales and after-sales service control process occurs, it can not adapt external environmental changes needed [1].

1.2.2 The presence of short-term mismanagement aluminum processing enterprise managers strong liquidity, short-term contract, for outstanding job performance during his tenure, with little concern for aluminum processing enterprise development potential, divide the costs, the cost difference adjustments, depreciation, etc., there has been artificially adjustment costs and other phenomena, thus improving the cost to the successor manager makes it difficult to quantify, or even, in many cases, he served as a manager in order to complete or achieve other purposes but to continue to falsify data to quantify the cost of whitewash financial statements, there is a planned economy "and so on, rely on, to" thinking, so that the cost can not play its due role to quantify, or even some leaders abuse of power, the annexation of the property, low morale unable to quantify the cost of strengthening [5].

1.2.3 Lack of management incentives for cost constraints better quantify economic benefits of improved aluminum enterprises lack incentives, can not quantify the cost of the strict implementation of the system, lack of quantitative internal cost containment system, unable to obtain accurate cost data management, disrupt the normal functioning of the market economy, with the development of market economy, the technological level does not meet the needs of cost reduction, cost accounting problems increasingly exposed, it is difficult to adapt to the market economy.

2 aluminum processing cost control and countermeasure quantified

Is the fundamental way to quantify costs and increase profits, no matter under what circumstances, can reduce costs and increase profits, sales revenue in the same circumstances, to reduce costs can increase profits; in the case of sales growth, cost reduction can make faster growth of profits; in sales revenue decline, reducing costs can be effectively controlled decline in profits. Therefore, you should quantify the cost as an important part of daily management task.

2.1 quantifiable cost control pathways aluminum processing enterprises should pursue profitability goals, while increasing sales revenue, but also do everything possible to reduce the cost and energy saving. When competitors and market sales less the cost control has become a key competitive advantage. Because, "profit = revenue - costs", so reducing costs is an important means of increasing profits, low-cost advantage from the price, you can take flexible price competition strategy [3].

2.1.1 quantifiable cost control in order to protect the aluminum processing enterprises seek survival and development pressures, reducing costs is the most important measures to reduce costs can be reduced breakeven point, expanding the margin of safety, enhance the ability to resist risks aluminum costs reduced, have the power to improve the quality, innovative design, or improve treatment of workers and increasing dividends, making aluminum processing enterprises in the economic downturn continues to survive.

2.1.2 Cost control quantify the cost basis of aluminum processing enterprises quantization control over the advanced level of the industry, the rapid development of the foundation only. You can reduce the price in order to reduce costs and expand sales, after sales expand production firm footing and have the ability to improve product quality, innovative product design, to seek new development.

2.2 quantifiable cost control measures in a market economy environment, the cost of aluminum processing enterprises should establish the concept to quantify, quantify the costs treated as a systems engineering, with emphasis on the overall situation, to quantify the cost objects, content, methods round analysis, to quantify the cost of the overall effectiveness should contact them to look at the concept of dynamic cost-effectiveness and cost control issues, from comparative analysis of inputs and outputs, to look into the necessity, reasonableness, from the point of view to determine the cost-effectiveness lift, to efficiency dynamic management costs.

2.2.1 establish the cost of the system management concepts aluminum processing enterprise executives and financial officers in accordance with the requirements quantify costs, sources of information on product costs, technology costs, production costs, inventory costs, cost of sales, as well as the cost of the customer's quality of opposition, disposal return repair costs to a strict and meticulous scientific means to manage. In the design and development planning stage, you should start to reduce the cost of activities, pay close attention to quantify costs, including the impact of changes in the cost of each link, penetrated into all aspects of the business aspects of forecasting, decision-making, technology, sales and other areas of expansion [7].

2.2.2 Strategic management concepts using cost mass production of the product so that when demand reaches saturation, the customers of consumer products in terms of quality, time, service and put forward new demands. Faced with fierce competition in the industry, aluminum processing companies began to pay attention to the development of competitive strategy, and at any time based on changes in customer demand and competitor situation and make the appropriate adjustments. Aluminum processing enterprises to quantify the cost to the global strategy for the object, based on the overall development strategy and developed. The primary task is to focus on strategic cost to quantify the cost of strategic space, process, performance, can be described as "different strategic choices at how to quantify the costs of organizing", is about the cost of the strategic management of information throughout the entire cycle process, through the company's cost structure, cost a comprehensive understanding of the behavior, control and improvement, seeking long-term competitive advantage. Strategic Cost quantify the internal structure and the external environment together, the cost includes not only the value chain analysis to quantify aluminum processing enterprise, but also including competitors value chain analysis and value chain analysis of the industry in which to achieve ourselves, global insight purpose, and thus the formation of the value chain strategies.

2.2.3 The implementation of the principle of full cost to quantify the concept of aluminum processing enterprises need to strengthen quantify costs and improve the workers to quantify the cost of understanding, and enhance cost concept, implementation of the "technical and economic integration", "production and management of both", to all workers carry out publicity and education cost-conscious, full cost-conscious culture, prompting management to all employees, especially leading cadres to form a strong cost consciousness, care and support costs quantification, mining cost reduction potential, scientifically cost projections, the cost of doing the right decisions, effective implementation of cost quantification and timely completion of accounting, effectively implement organizational cost analysis and assessment, to quantify the cost to participate in activities, change a few people to quantify the full cost of participation in the management, a high degree of concern about the cost of training and the use of professionals and take measures to actively organize various types of training costs, in order to improve the professional knowledge of cost from the technical and economic fields open up broad way to reduce costs, changing external constraints and incentive mechanisms rely on "punishment and reward" implement and achieve self-management, both as a way to quantify the cost of the lowest cost, but also reduce the cost of the most effective management [4].

2.2.4 ensure cost-effective aluminum processing quantitative information companies should establish a sound system of internal control, accounting and other services through the handlers control, accounting information to help reduce the occurrence of errors, which to some extent, to ensure that accounting and true and reliable information in the other. Principles to ensure that cost-effective quantitative information include:

(1) Economic principles: Here the word "economy" refers to conservation, namely human, material and financial savings, it is to improve the economic efficiency of the core, and thus, the basic economic principle is the principle of cost quantified [6].

(2) a comprehensive principles: specifically include the following aspects: one is the whole process of internal control, cost quantification is not limited to the manufacturing process, but extends forwardly from the production to investment, design, extends back to the user costs quantified the entire process. The second is a full range of internal controls, the cost to quantify not only the amount of the costs quantify the occurrence of internal control, but also to quantify the cost of internal control over time and use, pay attention to quantify the economic cost, rationality and legitimacy of expenditures. The third is full of internal control, cost not only have a full-time quantization quantify the cost of regulatory agencies and personnel involved, but also play an important role in the masses of workers to quantify the cost to make more in-depth and quantify cost effective.

(3) a combination of responsibility and rights principle: Only the effective implementation of responsible management industry topics for the week: aluminum processing to be right in principle to quantify the cost of the combination, the cost can really play quantify its effectiveness. Meanwhile in aluminum processing enterprise internal departments and units to quantify the cost of implementation responsibilities, must have decided to give it the right to quantify whether a particular cost expenditure within the specified range, if no such right can not quantify the cost. In addition, the cost must be regularly evaluated to quantify the performance, pursuant to the implementation of incentive to fully mobilize all units and staff cost quantified enthusiasm and initiative.

(4) Target management principles: This principle refers to the set targets as enterprise management of human, material and financial resources and the basis for important economic indicators. That is to quantify the cost of a standard as a basis for aluminum processing enterprises constrain economic activity and guidance, strive to minimize costs and maximize profits.

(5) Exception management principles: the so-called exception management, in a nutshell, is the key difference beyond the conventional management, aims to ensure that management will focus on some important issues deviate from the standards, namely: the exceptions [8]. Quantify the difference between the cost of the daily emergence of aluminum processing enterprises are often thousands, clue complicated, managers exceptions to the management of abnormal differences in focus, help to improve cost efficiency quantified.

3 to quantify the cost to be strict fine

A comprehensive yet rigorous cost quantification, not only with the production and operation of enterprises to achieve predetermined objectives associated with, but also the production and operation of enterprises continued to grow and develop the premise and guarantee. Any aluminum companies should continue to improve cost quantification, and be strictly enforced, give full play to the role of controlling costs and expenses. Therefore, the cost of establishing and improving quantification is an important part of the current reform of state only through strict cost quantified in order to strengthen internal accounting supervision, rectify and standardize the accounting order to ensure the quality of accounting information.

3.1 Establish organizational system to quantify the cost to quantify the cost of the organizational system in terms of its overall structure can be divided into three levels. First, the cost to quantify the decision-making system: This system is responsible for decision-making to quantify the cost of the overall goal to develop strategic measures to quantify the cost. Second, the cost of quantitative management system: This system is based on the cost to quantify the overall objectives and strategic goals to guide the development cost to quantify plan, exercise coordination, oversight functions, is to quantify the cost of intermediate-level main level of the system. The third is to quantify the cost of the implementation of the system: the system on the one hand to quantify the cost of liability has made it clear from the start, taking a series of tactics and measures to or exceeding the cost of their decomposition into sub-goals; on the other hand, according to the various departments and internal work physical characteristics and production processes of formation characteristics and cost to develop a method to quantify the secondary costs and to exercise appropriate decisions, management functions to ensure that met or surpassed their decomposition to quantify the cost of sub-goals.

3.2 Cost quantify the financial system reform in practical work, especially aluminum processing enterprise into small accounting unit, the operating entity have appeared in a number of separate accounts, financial power dispersed, there has been the headquarters of the burden of expenditure costs, profits stay in the division of while under the supervision of the financial sector is relatively soft, resulting in the phenomenon of aluminum processing enterprise efficiency loss. In response to this phenomenon, we must reform the current financial management system, solve the "expand its powers, decentralization and the need to focus on" relationship, the dispersion of property rights reverted to the headquarters of unified management. To ensure the realization of this focus, accounting staff of each unit must be the original unit (or department) decoupling [9], under the unified management of the finance department, personnel hired by the Finance department decided to make accounting staff can purview in , dutifully doing financial accounting work.

3.3 Strengthening of Purchasing quantitative management is an important part of Purchasing Materials quantify aluminum processing enterprise management, improve material procurement system, a reasonable division of labor procurement, procurement of science is the fundamental guarantee to reduce procurement costs. So, take the necessary measures to strengthen the procurement of materials management is very important to quantify.

3.3.1 Purchasing implement centralized management of the centralized procurement of materials, only the materials sector, in order to lay the foundation for centralized bulk purchasing, on the contrary, the practice of centralized management, resulting in long procurement, will inevitably lead to chaotic management, cost tailspin.

3.3.2 The implementation of centralized bulk purchasing centralized bulk purchasing is the inevitable trend of market economy is to achieve reduce the purchase price of the premise, to achieve control, we must first centralized purchasing, only concentrated to form the bulk, with the bulk in order to secure a variety of preferential policies in order to achieve cost aluminum processing enterprises quantifiable targets.

3.3.3 Management Procurement sources select material procurement sources, should adhere to the "quality standards, lowest rates, at the same cost, the quality of the excellent" principle. Determined in accordance with the principle of long-term procurement and supply channels, to establish the sources of archive material procurement, implementation of dynamic analysis and management of material procurement sources, periodic review, does not meet the requirements of timely adjustment. But also to continue to develop better channels, the channels formed between competition and create conditions to ensure the material supply and reduce procurement costs [4].

3.3.4 reasonable development of the procurement program to develop a reasonable procurement program is an effective measure to reduce procurement costs for the procurement of supplies is really necessary, the purchasing department should be based on the validation of the channel, according to the station, the transportation methods, each estimated cost of procurement and use purchase cost accounting method, according to determine the best solution.

3.3.5 full use of idle resources mentioned here idle resources, including full use of external and internal itself idle resources, such as land, minerals and natural objects undeveloped, idle factories, warehouses and equipment and so on. These resources itself has value, but abandoned due to various reasons, its value being buried. If they are legitimate business operations or with less money to have them through cooperation, lease, etc., will produce low-input, high-yield results [8].

3.3.6 revitalize the sluggish inventory backlog backlog unmarketable products, aluminum processing business is a common problem, sluggish inventory sold, its value will naturally detract from, the timely processing of sluggish stock becomes aluminum processing business in an important matters. Backlog of product if you do not sell out in time, it will slowly lose the market, aluminum processing enterprise in the shortest possible time to the backlog of goods sold, the surface is still a loss, in fact, the losses caused by falling product backlog to a minimum, in this sense, and actively deal with the backlog of products, but also a cost savings.

3.4 to strengthen internal oversight of internal controls to quantify the cost of focusing on results, if it is a man of great principle, even if it is incompatible positions concurrently, may not be a big problem, but if it is a lack of principle, even if on incompatible positions, may also be collusion. Aluminum processing enterprise internal control is a process that included a large number of systems and activities through the management process implementation. Therefore, to ensure the effective implementation of the internal control system is, and performs good effect, internal controls can readily adapt to new circumstances, must also be monitored. Supervision is an Over time, some internal only emphasized on the "approval process" oversight, regardless of "insider" did the right thing, as long as there is "insider" signature, even if the internal control oversight in place, its the results will be "educating" a group "Shuoshu", "worms", aluminum processing enterprises also will decline. On the oversight of internal control procedures must resolutely overcome emphasis on supervision, contempt for the "internal" oversight bias, really do "Three strengthen." First, to strengthen internal controls aluminum processing enterprise legal supervision, the establishment of aluminum processing enterprise collective approval, and other major decisions regime to put an end to the director, manager, autocratic, misbehave; the second is to strengthen the aluminum processing enterprise sector management control of supervision, contain between departments to establish mutual system to prevent excessive power sector or collective Xunsi fraud; third is to strengthen key positions and regular inspection rotation system [5].

3.4.1 strengthen cost budgeting management in a "must be reasonable, frugal and efficient" principle, to quantify the cost of the budget to do the work and budget by the number of last year, last year the actual number of annual operating budget process combining human, financial dynamic changes thereof, squeezing moisture, eliminate irrational factors, the cost of seeking the optimal number of quantization of the budget, to achieve a reasonable annual cost effective guidance to quantify.

3.4.2 strengthen cost management cost of conventional budget budget management is a very ordinary routine administrative processing industry topics for the week: aluminum processing to be cost quantification, it is also a place of work is extremely difficult to control. The key is implemented, the cost can be controlled by one of the target budget broken down into various functional departments and units, such as the personnel department and the department is responsible for wage labor wages, benefits, pension newspaper insurance, unemployment insurance, medical insurance and other personnel expenditures; Property Management department responsible for utilities, heating costs, communication costs, property insurance, property maintenance and other expenses, the Office is responsible for business entertainment expenses, travel expenses, conference fees and vehicle expenses, fees, books and materials expenses, etc., centralized management of the budgeted amount, the lump sum to use, regular evaluation of conservation prize, overspending conceited [9].

3.4.3 implement the target cost limit on cost control in quantitative management, to fully implement the target quota control, conservation incentives, cost overruns punishment system. First, according to the requirements of the "Financial Law" and the "financial system" to determine the scope and cost of each project to quantify the expenditure of expenditure, according to the nature of the project and quantify cost control principles, under the jurisdiction of the relevant units, such as: operating expenses under the jurisdiction of Purchasing department, sales department, management fees, finance charges centralized management by various other functions. Each department also quantify the cost of the project will be broken down into subordinate workshop, team and individual, a clear responsibility to make full sense of improving cost control in order to achieve full control of expenses purposes [2].

3.5 Strengthening quantify the cost of the daily management of the daily management of costs in aluminum processing enterprise management is both a very ordinary job, it is also a place of work is extremely difficult to control. Quantified by the inherent cost effectiveness and impact of external factors, including the implementation of the standards of science, implement the accuracy, universality and particularity of the case and so on. Quantify the cost of the daily management, according to the principle of unified leadership and management of the combined classification, implementation of cost classification centralized management accountability, and establish a capital, fixed costs, variable costs three indicators as the center of the accounting, control and evaluation system. Aluminum processing enterprise financial management and other departments should be in conjunction with the relevant departments, according to the aluminum processing enterprise operation cost forecast for the next year, and the costs break down into subordinate units, departments, strengthen the assessment and control of the subordinate units changes in cost and profit sectors as assessment indicators, the labor productivity and profits bundled scores count as the basis for award, the headquarters subordinate units, departments should further decompose responsibility indicators for yield, quality, consumption, attendance four indicators under reach the next level in order to ensure the completion of this unit responsibility indicators, month-end accounting responsibilities by preparing internal reports, reflecting the various units of the indicators of actual performance to achieve before, during control and reduce costs. [7] .

4 aluminum processing costs quantify conclusions as aluminum processing enterprise managers as well as for managers to provide information services, accounting personnel involved in management decision-making on the one hand to enhance the legal awareness, improve professional ethics managers and accounting personnel; on the other hand To enhance the moral self-awareness, enhance the sense of responsibility and moral responsibility to maintain professional conscience, to enhance the aluminum processing enterprises to achieve the dual goals of economic and managers moral standards.

Profit is the main beam of the corporate life, and the cost is a pillar of corporate profits quantification of sources, how to strengthen the cost to quantify, control expenses, improve economic efficiency, the basic tasks of modern aluminum processing enterprise system, the only firmly established quantify costs this pillar, corporate profits will give bring vitality to enable enterprises to remain invincible in the fierce competition in the future.