The variances analysis of direct materials cost in its current image doesn't provide suitable information about the competitive attitude of
economic units from costing side, and doesn't encourage to continuous improvement, and doesn't suitable or su
fficient to modern industrial environment. therefore it should development the traditional analysis tovariances of direct materials cost, paying attention to needs and strategies of modern industrial systems for treatment the criticisms that are directed to this style and improves from role of standard costing system in support of control systems and performance evaluation, and achievement the strategy of continuous improvement.
Where of past, the researcher prepared suggested framework for development of variances analysis of direct materials cost, which suits
with requirements of modern industrial environment, and its application on company of Banias refinery. and the research reaches to series of results, the most important of those are:
The changes which are happened in modern industrial environment didn't led to collapse and disappearance role of standard costing system, and waiving from one of its ways, it is analysis of cost variances.
The traditional analysis to variances of direct materials cost doesn't refer to movements of stock, and doesn't refer to efficiency of the
buying, production and selling processes.
A production process includes several sub-processes (working areas) that are responsible for performing the different tasks required to accomplish the mission of the process. Thus, it is important to avoid a shortage of resources, unplanned stoppages
and idle times that may arise. The problem addressed in this paper is: How should maintenance be considered in conjunction with plant activities, such as production, quality and personnel competence for easily and effectively identifying and quantifying
company losses in profitability and eliminating underlying causes? In this paper, the interactions between major working areas have been introduced and discussed. The major result achieved in this study is the development of a new model (Maintenance Function Deployment (MFD), for an easy and effective identification and quantification of company losses in profitability. Four matrixe have been used for developing MFD model for effectively integrating maintenance with production, competence and quality. An application example is conducted to demonstrate the possibility of applying the model and its potential for enhancing production processes profitably. The main conclusion is: applying MFD gives an enormous opportunity to continuously maintain the quality of the working areas under consideration, which makes MFD one of the company s objective driven tools for enhancing its profitability and competitiveness.
