A Study On Cost Management Of Scrap Industry

2011 is the last year of The Eleventh Five-Year Plan, and Chinese economy is growing steadily and rapidly in this year, even though it is after the International Economy Crisis. Chinese GDP has increased 10.3% in 2010, which is much higher than the other countries in Europe and America. Meanwhile, the quantity of crude steel produced by China has increased to about 627 Million Tons, which takes 44.3% of the worldwide market. This makes China became a giant for the iron and steel industry.But compare with the large volume of capacity, the average profit of Chinese steel industry is about only 5%, even lower than the bank interests. At the same time, Chinese steel industry made much greater pollution compare with its low profit. From the low term aspects of the steel production, China will start to develop the UHP-CC Steel-Making technology. And the most important part of UHP-CC Steel-Making Technology is the Scrap. But there are not scientific methods for most of the Chinese steel enterprises to set up the price for the scrap. In this essay, we will discuss about the cost control method of the scrap manufacturing companies, and to achieve the target of pricing the scrap scientifically, to discuss the progress brought to the companies by transact its traditional way of cost control to the modern way.This essay has analyzed the cost control management of CY company from the panorama of processing and manufacturing industries, by the real cases of CY company, furthermore, it offered some operational methods for the company to improve its cost control management. This essay made a good combination between the theory and practice.This essay has been divided into 5 major parts, the first part is introduction, it has explained the background, purpose and the problems, illustrated the general structure of this essay. The second parts is about the theory related to this essay, and it has adopted the theories about production cost, including the concept and also gave the analysis. The third part is the structure of analysis and the related process. The forth part is mainly about the analysis of real cases in CY company from the aspects of production cost control. And the last part is the conclusion of this essay..From the analysis of this essay, we got the following conclusion.I. We need to face the market, to adopt the current management science in our company management system, and to use these theories to serve our company.II. These theories are coming from the real cases, and before we start up the analysis, we need to collect most of the related data and set up some analysis model with the data from other more advanced companies in the same industry.III. The key point for the success is about the knowledge, understanding and promise from the company management team, and the important part is about all the employee and functional system.