This analysis has been conducted for 8 chemical plants built in Korea during 1975-1976 and the results have been compared with those in U.S.A. observed by Kenneth M. Guthrie. Equipment and materials supplied by domestic makers are limited in activity field and occupy only 12% of all equipment and material cost. However, unit costs of most materials supplied by home such as cement, steel, cables and carbon steel pipes, etc. being relatively cheaper than those of abroad, their effects on material-to-equipment ratios are apparent. There is a deep difference in labor wage rates between Korea and U.S.A. as much as 16 times. However, the labor productivity observed in these model projects is in the range of 1.1-1.4 to the Gulf Coast, U.S.A. during the same period. And this low wage rate and relatively high productivity have the greatest influence on deviation of Korean cost structure from that of U.S.A. In these model projects, engineering and construction management was conducted by foreign contractors (mostly U.S.A.), and the resulting project indirect cost amounts to 7.5 times as high as most cases executed by Korean contractors alone. Weighted percentage of each component and L/M-ratio by activities of direct field cost derived from this analysis are shown in detail in Tables 2 and 5 to provide a basis for futher study and comparison.

In Korea Small-medium Companies Constitutes 96.5% of all of the mining and manufacturing industries, about 35.7% of the total production of value added business, an average of 35% of the actual export of industrial goods and 47.6% of employment since present at the end of 1979. Now then Small-medium Industry Companies organization style constitutes 78.6% of a form of private company and 81.2% of the total on an small scale under 50 persons inregular employee. Specially, the trouble of business management of the mining and manufacturing Companies in Korea are constituted average 28.3% of production management ill the worst trouble of business management from 1973 to 1979 and small-medium industry Companies are the same of about more than 30% of production management in the trouble of business management. In this cases, the status of production management is effected by small-medium industry companies are the style of non-system and non-organization, but then 13parts in production management operations have the many trouble problems. In this circumstances a change for the better of production management operations in small medium industry companies are suggested the application effects and achievement points of production management, it is suggested a kind of variety and a small quantity, production management system of small-medium industry Company. And then Industrial Engineering technics is applied systematic route and the company grow more than better its physical condition for the improve productivity applied system approach for production management. There for the chapter 4-5 of this paper treats of a rational production management system approach, it make a emphatic major point of high level of economic growth of small medium Industry enterprise.