Study On Strategic Cost Management (SCM) Application Model

This paper statements the importance of research of SCM and it's application model first, and point out that changes of the manufacturing environment and external competitive environment of enterprises, rapid development of the strategic management thoughts are the main cause of the appearance of SCM.SCM have a enormous effect for enterprises to obtain competitive advantages, the study of SCM application model also has a very important practical significance. After a systematic summary on Western and Chinese scholar's studies on SCM application model, this paper point out that the domestic and the foreign studies on SCM application model have achieved a lot of consistency in certain areas. But there are also many differences,which mainly be reflected in the emphases or foundations.Generally, the domestic and the foreign research may be divided into three categories, they are activity based cost management, value-chain based cost management, and quality-engineering based cost management. This paper persists that the functional elements such as value-chain analysis, SWOT analysis, operating costs and cost-driver analysis, cost planning and correction, strategic performance evaluation are essential to all reasonable SCM application models, despite these differences.In the process of SCM application model's designing and construction,firstly, this paper makes clear of the objectives and principles of designing of SCM application model, persists that the goal of construction on SCM application model should be to help enterprises to obtain and maintain competitive advantages, and service to the strategic management.Long-term,logical,extroversion,integrity and competitive advantages are the basic principles which to be followed in designing of SCM application model. Next, this paper analysis and defines each of the contents and elements of SCM application model, point out that SCM application model should be includes the gathering of strategic intelligence and information, the analysis on strategic intelligence and information, the strategic planning and designing, and the strategic performance evaluation, further that these contents and factor's intrinsic link, and forming a system of SCM application model ultimately.Finally, this paper selects a sample of industrial manufacturing enterprise, introduces the using steps and methods of the model in details, studies and concludes the application of the model in this case. As far as the research methods are concerned, this paper mainly uses standardized research, and carried out empirical research to a certain extent on the basis of specific cases.