Research On The Application Of Lean Cost Management In Shitong Company

As the most important part of manufacturing, machinery ma nufacturing industryshows great significance to the develop ment of the natio nal economy.With theglobalization of market,competitio n is becoming fierce.Sma ll and medium s izedmachinery manufacturing enterprises are lack of funds.Improving the ability of costmana ge ment while ens uring product quality becomes an effective way to stand outfro m the competitio n.This paper d iscusses the details about lea n cost mana geme ntbases on the theoretical foundation,and it has been applied to Shi Tong company forsolving practical proble ms.Firstly,this paper disc usses lean mana geme nt,strategic ma nage ment, value cha inmana ge ment a nd operatio n mana geme nt which are the theoretica l guidance o f leancost mana geme nt.The concept,framework and advantages of lean cost mana geme ntare discussed in detail to demo nstrate the advanced nature of it. Second ly,this paperdiscusses the cost ma nage ment s ituation,proble ms and reasons in the co mpany.Itshows that the cost ma nage ment o f the company is badly influe nced by the p lannedecono my,being led to narrow concept of ma nage ment, imperfect cost mana geme ntsystem,and unc lear divis ion of respons ibility for cost contro l.One ha nd, imperfectproductio n site ma nage ment, high fa ilure rate of machinery and products make the costof production is high.On the other ha nd,there is no measures to ma nage costs indesign,procure ment, marketing,services and other part of value cha in.Third ly,thispaper discussed the general idea of imp le menting lean cost manage me nt in thecompa ny.And elaborates how to ma nage the cost in design,procure ment, marketing,services and other part of value chain.Finally,the paper proposes establishing a leancost manage me nt organization,build ing a lean culture and improve the incentivesystem to ensure the lean cost mana ge ment be successful imp le mented in thecompa ny.This paper uses lean cost mana geme nt to improve the cost mana geme ntstatus of Shi Tong company.It has an important s ignificance for improving the abilityof cost ma nage ment in sma ll and medium sized enterprises.