Design of a standard cost model for the improvement of productivity applied to a manufacturing company

Abstract

The objective of this study is to improve the productivity of a manufacturing company in the locality of Tecate B.C. by designing a standard cost model to identify the differences between the actual and standard costs, as well as to define the strategies to minimize the deviations. The scope of the research is descriptive as the purpose is to collect information and measure the results. The research is a field study because it is in a real situation, a cross-sectional and prospective model was applied because a proposal for the implementation of the model was elaborated. The results show the analysis of the deviations in direct materials, labor and indirect manufacturing costs, and a study of the production process is included in order to determine the causes for the variation with respect to the standard. Some corrective measures are proposed to achieve efficiency in operations and decrease variations in the next production processes. Without doubt, the standard cost model helps to improve production efficiency, which is why it is considered a valuable tool to carry out an effective planning and to have an adequate control that allows the correct decision making.