Research Article
A Case Study on the Application of Site-Cost Management System to Improve Production Process
1 Sungshin Women's University, 2 Kyonggi University, 3 Kumoh National Institute of Technology
Published: January 2015 · Vol. 19, No. 4 · pp. 129-160
Full Text
Abstract
Site-Cost Management System refers to cost information system which manage working field to reduce the difference between accounting cost and actual production process. Under the current cost management systems, only post-analysis could be possible and specific company's goals and action plans did not provide. Therefore, field workers could not recognize importance of cost reduction due to the gap between working field management indicators and cost information. In this study, we looked construction and design-procedure of site-cost management system through reviewing ‘A’ company which successfully introduced site-cost management system. And then this study give practical suggestions for the successful settlement of the site-cost management system. According to the results of this study, ‘A’ company focused on improving the performance management system, production procedure and standard information for the priority tasks. On the other hand, practical suggestions for the successful settlement of the site-cost management system are as follows: First, road-map should be established to improve performance management for the manufacturing sectors. Second, hidden cost should be discovered and reduced in order to substantially improve the productivity through the settlement of site-cost management system. Third, it is essential to install a smart tag (RFID: radio frequency identification) to improve the production site. This study investigated actual construction of site-cost management system. Thus, this study provides issues in advance for companies which would adopt site-cost management system. In addition, this study is useful for academic purposes in advance course of undergraduate and MBA because this study explains in detail construction and design-procedure of site-cost management system. And this study has contributions to provide practical suggestions for the successful settlement of the site-cost management system through actual case.
