Study Of Enterprises Cost Management Based On Value Chain Analysis

With the development of network economy and knowledge-based economy, the human society entered an information-based and technology-oriented society, operating environment has changed a lot in nature, the competition grows in intensity in the world, therefore the enterprise cost management work must be changed and even deeper revolution, create and maintain cost competitive advantage to survive and develop. Traditional cost management can’t comprehensively analysis enterprise cost behavior, already presented many shortcomings. Porter’s value chain theory is an important tool for the acquisition cost advantages and more and more attention to the modern enterprises. If enterprises would gain competitive advantages, it must manage the entire value chain activities to maximize value added. The value chain analysis method broke through the traditional cost management scope limit. It took enterprise’s entire life cycle angle as the starting point and urges the enterprise to consider the cost management question under a more widespread background. It was not only concerned about the production cost savings, but also concerned about the product from development design, material procurement, production to disposal of the whole process of control. It was not only concerned about the cost of the enterprise value chain, but also concerned about the environment outside the organization and industry suppliers, vendors, customers and other external body’s impact on cost performance.As an effective tool of value management, the value chain theory has laid the rationale for cost management pattern restructuring. The purpose of this article through the value chain and the combination of cost management theory analysis, put the cost in the whole business process to survey, and strive to contribute in terms of cost management innovation, build value chain cost management mode and the mode’s protection mechanisms in line with the times in order to be able to provide reference value for cost management work enhance its overall competitiveness and achieve maximum value added.The article used the analysis method which the standard research and the case research unifies on the basis of gradually combing the predecessor’s achievement of value chain cost management analyzed the difference between traditional cost management and value chain cost management, further pointed out the significance and the condition on implementation, then construct modern value chain cost management mode. The link first defined the concept framework of value chain cost management and clearly pointed out its essence, objectives, body, object and analytical procedure. They had provided the theory direction for the pattern concrete construction. Then gave the core business to body, followed by external and internal value chain analysis and post-performance evaluation, managed the workflow and cost of value chain node, integrated value chain resources to obtain long-term competitive advantage. Finally it took the AM enterprise as the example made the evaluation and analysis of cost control and its effects and showed the practical application situation of value chain model.