Analysis of production cost efficiency model in Iran Khodro Company

The purpose of this study is to analyze the interpretive structural model of production cost efficiency in Iran Khodro Company.

The method is qualitative-quantitative. In the qualitative section, by interviewing experts, 17 variables are extracted and a structural interpretive model of efficiency of production costs is designed, and then by determining the levels of the research model using the one-sample mean T method and Friedman test. The analysis and ranking of research hypotheses are discussed.

The research findings are a 5-level model that according to 4 hypotheses obtained from the levels of the research model, it was determined that each level has an effect on the previous level and the effect of cost reduction in production lines on financial performance more than others.

According to the output of this research model, based on the determined levels, it was determined that in the obtained model, technology changes (level 5) are the most effective and profitability, gross production income and basic production cost efficiency index (level 1) are the most influential variables on production cost efficiency. They show that in order to increase the efficiency of production costs in Iran Khodro Company, we must seek to improve and change the technology to increase the efficiency of production costs, gross production revenue and profitability of the company. Also, according to the analysis and ranking of hypotheses, first of all, cost reduction in production lines should be considered, which affects financial performance. The obtained model will make more accurate knowledge of the variables affecting cost efficiency in the automotive industry that managers of this industry should consider the current model and its variables for cost efficiency and greater profitability.