Volume 40 Issue 11
Nov.  2014
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Zhou Ning, Ma Jing, Luo Jide, et al. Activity optimization in aircraft manufacturing cost control[J]. Journal of Beijing University of Aeronautics and Astronautics, 2014, 40(11): 1481-1486. doi: 10.13700/j.bh.1001-5965.2013.0723(in Chinese)
Citation: Zhou Ning, Ma Jing, Luo Jide, et al. Activity optimization in aircraft manufacturing cost control[J]. Journal of Beijing University of Aeronautics and Astronautics, 2014, 40(11): 1481-1486. doi: 10.13700/j.bh.1001-5965.2013.0723(in Chinese)

Activity optimization in aircraft manufacturing cost control

doi: 10.13700/j.bh.1001-5965.2013.0723
  • Received Date: 13 Dec 2013
  • Publish Date: 20 Nov 2014
  • Activity-based cost (ABC) was used to replace conventional volume-based product-costing system in addressing cost calculation and optimization issues in the aircraft manufacturing industry. Activity-based management (ABM) was applied to further implement cost control and optimization based on the activity analysis results. Cost calculation based on ABC in five types of subcontract products from a China-based aviation manufacturing enterprise (XYZ) resulted in an optimized workflow. The optimization was realized via adopting measures including a reduced or eliminated activity, activity selection or sharing. Results show that ABC is more accurate than the conventional volume-based product-costing system, and ABM can be a more effective optimization tool for cost reduction and cost control.

     

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