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Cost Management Based On Shared Service Centers

Posted on:2009-10-22Degree:MasterType:Thesis
Country:ChinaCandidate:L YuFull Text:PDF
GTID:2199360272489315Subject:Business Administration
Abstract/Summary:PDF Full Text Request
Traditional cost management is via the overall process control, e.g. purchasing, inventory, production, sales. By batch purchasing, increase inventory turn over, expanding production, decrease fixed cast allocation percentage and control selling & general expenses, etc. to achieve the cost control target.This thesis is starting from organization structure, breakthrough the traditional cost management, cost control is conducted via organization restructuring, process conformity, setting up Shared Service Center("SSC"). Author uses IKEA Group as example, detail introduce this new cost management module.Shared services center as a kind of new organization structure to split non-core businesses from original organization and transfer into a special service department to operate centrally. By setting up a center to provide such kind of services and which can be shared by as many as possible business units, in order to improve efficiency and deduct cost. At the same time, the original organization will be only focusing on core businesses or the businesses which are most competitive strength and value-added. So that the whole organization will become more flatting and downsizing.The thesis includes:Part 1, the conspectus, mainly introduce the specialty of cost management via shared services center, shared service center definiation and the cause of coming into being, its development trend, so that to give readers a basic idea about cost management via shared services center.Part 2, brief IKEA Group, its special operation module, analysis the reason why IKEA Group need to setup shared service center to manage the cost, so that readers can have a understanding about the background.Part 3, describes step by step of the setting up of IKEA (China) shared service center. The setup of the shared service center is the base of this special cost management module. The key points and solutions summarized in this section are based on author's working expenses, which are more practical and can be readers' reference.Part 4, summarize the how to manage the cost based shared service center. The thesis shared IKEA (China) Group's successful experience about how to management group cost based on shared service center and its result. Part 5 and 6 describe the sufficient preparation should be done before use cost management module based on shared service center and how to solve the problem after utilizing the module.Part 7, the conclusion. Prospect of future development of shared services center, summarize the specialty of the cost management module based on shared service center and summarize how to flexibly utilize the module for other enterprises or group companies.Author of this thesis has more than 3 years working expenses in a IKEA (China) and mainly is responsible for shared services center build up and performance improvement and personally experiences every step of its development and its contribution to the overall group cost management. Author expects that via this thesis, the readers can have an overall understanding about cost management via shared services center and can promote this new module, so that more and more enterprises can implement flexibly and can benefit from it.
Keywords/Search Tags:Cost Management, Cost Causes, Shared Services, Restructure, Conformity, Synergistic Operation
PDF Full Text Request
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