Enterprise Strategic Cost Management Research Based On Value Chain

Nowadays, international market competition becomes more fierce, and the management methods improve a lot, cost is becoming the key factor in the competing environment, and the position of cost management strengthens in developing enterprise competition. The changes of competing environment require that cost controlling coordinates the enterprise competition strategy closely. At present, cost controlling theory is getting mature in developed countrys, but most enterprises in our country still use traditional cost analysis method, there is not a specific and feasible method used to realize strategic cost management.Value chain theory provides an effective way in researching enterprise's cost controlling. This article trys to discuss this new problem. At first, we introduce the value chain. To acquire the cost and competition advantage, we use the value chain theory, strategy cost control theory, competitive advantage theory as guide, and use value chain analysis method, target cost planning, value engineering synthetically, and then analyze the cost of planning, producing and selling stages. We use cost planning and value engineering in the designing stage to control cost at the beginning; In the producing stage, we use lean production to manage cost; At last, we use six sigma to control products'quality cost. It is an entire life cycle cost control. This method applys cost control to strategic cost management effectively, and reduces product cost, thereby, it develops enterprise's competition advantage.At last, take S enterprise as an example, implemented target cost management to this company, and controlled its producing cost using JIT and lean production. Finanlly, this company reduced its product cost and improved competition advantage successfully.