The Importance of Product Cost Rationalization to achieve a Customer Satisfaction Applied research in the Electric Cables Plant / Ur State Company

Abstract

The research aims at explaining the reasons for the high cost of production and the application of modern concepts in accounting costs and administrative, which came to remove loss and waste and rationalization of costs and improve operational performance and in response to changing conditions in the business environment. As a result of these variables and circumstances, the research problem was manifested in the high cost of manufacturing the products of Ur Company, which lost competitive precedence with other products in terms of price, quality and other specifications imported from various sources. In order to achieve the objective of the research and solve the problem was developed a basic hypothesis that the use and application of modern concepts lead to rationalize the cost of manufacturing products and improve activities and processes and create a market share in the local environment. divided of research into three topics The first topic reviewed the theoretical aspect of modern concepts and competitive priorities, including rationalization of costs and removal of loss and improve performance and address the negatives in traditional concepts and methods. Either the second topic dealt with how to rationalize the cost of some of the products of the electrification plant, either the third section, he concluded with a number of results, the most important of which was the high proportion of production costs, especially the proportion of direct wage costs to the total cost of manufactured goods (37%)Very high percentage and low competitive precedence prices of local products of the company compared to the prices of imported products, and the obsolete equipment and machines in the factory. This caused a significant increase in the cost of maintenance and backup tools. A significant reduction in actual production levels from the planned annual level of energy. It is also necessary to continuously seek to reduce the production