A Research Based On The Value Chain Of The Cost Reduction Management Of A Company’s ABS Product

With the rapid developing of global economy,company’s manufacturing and competition conditions have some new distinguishing characteristics. Function of their products increasingly the same as others.marketing share carved by some special companyies,source of profit becoming more dependent on cost management.The new cost managemnt is not conventions cost management used before,the new cost managemet gather up all measures and tools,it is fully applied in various stages of production and operation,and match up companies take their strategics,.To the object of Yongxing company from the view of empirical point, research value chain theory in the application of cost management approach.1. Set out the theoretical basis for the study, summed up the value chain and cost management heory and Research at home and abroad.And analysis it in applied research for the strengths and weaknesses.Then by financial accounting and management accounting and other related theories, discusses the theory of the value chain based on the content of cost analysis,combined with the concrete practice of business requirements, proposed a set of the value chain theory which is applied in the framework of enterprise cost management practice system.2. To LG Yongxing’s case, first of all, analisis the need for cost management of LG Yongxing company’s value chain, including the political and legal environment, economic environment, social and cultural environment, technological environment, industry conditions, competitors and internal environment, clarify the urgency of the implementation of value chain analysis.3. Analysis of LG Yongxing company’s value chain structure, make sure of the company’s cost concept.Then corporate cost driver analysis and cost-savings analysis.4. Through the LG Yongxing company’s value chain cost management approach in implementation, respectively, from the company’s cargo damage for product management, the internal production chain cost analysis, production process improvements, production equipment maintenance, product quality and other aspects of the management of follow-up analysis to explore the theory of value chain cost management method in the practical application in the enterprise.5. Through the theory of value chain cost management method in the practical application in the enterprise. The traditional cost management can not satisfy to the requirement for companies to take one step ahead in reduce more cost and obtain more competition advantage,companies must improve the level of their value chain cost management. At meanwhile, the research do not enough this time and points out shortcoming need to be perfected in the future.