Research&Analysis On Strategy Cost Manangement Of Metal Stamping Companies

China has been called as “Global Manufacture Center” due to the low manufacturecost for a long time. However, with the development of China economic and theappreciation of the RMB, the manufacture cost of China manufactories keep increasing.Bi-link Shanghai is a typical manufactory who produces metal stamping parts. As itfaces the same challenges as most of China manufactories, like increasing operation costand customer requirements with lower and lower profit margin, this dissertation takesBi-link Shanghai as a subject, I will focus on the cost management area, use strategy costmanagement theories in order to bring up some improvement proposals.This dissertation introduced the business environments and characteristics of bothBi-link Shanghai and Metal Stamping Industry firstly. And it also introduced the mainproducts, customers and manufacture process of Bi-link Shanghai. Based on the followinganalysis on the cost management method of Bi-link Shanghai, I think the current costmanagement is lacking of extensionality, it should cover the “whole picture” with longterm solutions, and it should be more challenging.According to the issues mentioned above, I will use the2major theories of strategycost management, value chain and cost driver, to work out some particular improvementproposals for both Bi-link Shanghai and Metal Stamping Industry.Firstly, by using the theory of value chain, I will analysis the internal value chain andindustry value chain. After the evaluation, I suggest that Bi-link Shanghai and MetalStamping Industry should control the cost from the very beginning, and they should paymore attention to the cooperation with both suppliers and customers.Secondly, by using the theory of cost driver, I will analysis the economy of scale, thedegree of integration and the improvement of production technology. After the evaluation,I suggest that Bi-link Shanghai and Metal Stamping Industry should integrate the resources,increase the economy of scale in order to reduce the cost. In the meantime, both Bi-linkShanghai and Metal Stamping Industry should realize the importance of the improvementof production technology; keep improving in order to increase the competitiveness in themarket. This dissertation expected to find out some proposals to improve the cost managementmethod of the metal stamping companies by using the theories of strategy costmanagement.