The AFT Chemical Company’s Cost Control Research Under The Internal Value Chain Perspective

In the international background of the globalization of the world economy, the marketeconomy system in China is increasingly perfect today, our enterprises not only face thedomestic competition in the market, and foreign enterprises also like our country enterprisechallenge. With the pace of economic integration and technology advancement speeding up,the enterprise profit rise gradually narrow space, in order to effectively respond to the changesof internal and external environment, enterprises must strengthen the cost control, which is aninevitable choice for the survival and development of enterprises. If the enterprises want tolong-term stable development, seeking to benefit in the competition, we must seek a bettercost control method, adopt more effective cost control measures.Enterprises in the new market economic situation and competitors’ competitive strengthwe need to study from a new angle, namely, look at the value chain between enterprises whohas better optimization, who will have a higher competitive strength. As everyone is confusedat the exploratory stage, people guide value chain theory in Michael Potter’s was found underthe new idea of cost control, the thought of value chain and enterprise cost control is thecombination of the two, this new thinking will have a positive impact on the development of aset of traditional cost control theory. The cost of the enterprise based on the value chainperspective control thinking, the use of new management ideas to carry out a comprehensivestudy on the control problem of enterprise cost, the construction conforms to the need of thedevelopment of enterprises cost control under the new system in twenty-first Century, helps toenhance the core competitiveness of enterprises, and can control the cost of the traditionaltheory and method system of perfect and development. This paper is to study the practice ofAFT in chemical enterprise cost control unit. Because of the particularity of the chemicalindustry, enterprise has its special industry in production and management, the article pointsout that not only the chemical enterprise include cost problem by the traditional cost controlideas under the influence generated by the enterprise itself, but also in research anddevelopment, procurement and inventory, equipment maintenance and management of humanresources cost control problem. Based on the new concept of cost control, carried on theanalysis to the practice unit cost control status from the perspective of the enterprise internalvalue chain analysis, found that enterprises should strengthen the relevant work and activitiesof management, enterprises should break through the traditional idea of cost control, costmanagement from the perspective of value chain. Not only to improve the maintenanceefficiency of enterprise equipment management work, but also improve the efficiency of equipment maintenance; for less investment enterprise development problems, enterprisesshould properly promote investment in research and development, improve enterprise R& D capability; in the purchase link should pay attention to the cooperation withsuppliers; in the human resources management should pay attention to the recruitment process,strengthen staff training etc..The full paper is divided into five chapters. The first chapter mainly involves theresearch background, significance of the enterprise cost control, cost control in basic researchand summarize the domestic and international value chain, puts forward the method andthought of this research, and introduces the research innovation and weak point. The secondchapter mainly introduces the cost control and value chain related theory, and introduces theactivity-based costing. The third chapter makes the simple introduction to AFT chemicalenterprise, introduces the characteristics of production and management of chemicalenterprises, and points out the existing cost control problem in the chemical enterprise. Thefourth chapter enterprise internal value chain based on the subject of AFT chemicalenterprises in the value chain and the auxiliary value chain analysis, and from the point ofview of value chain and puts forward the corresponding settlement measures aiming at theexisting problems in the cost control. The fifth chapter is the conclusion, summarizes theresearch achievements of the prospect and the future.