A Study Of Dll Co., Ltd Cost Controlling Based On Value Chain

With the rapid development of globalization and integration of knowledge and information, great changes have taken place in the environment of enterprise management. The competition between enterprises becomes more and more fierce. The advantage of low cost of our country’s enterprise operation gradually disappear. In order to adapt to the development of the times and survive in the increasingly fierce competition, the enterprise must realize that the cost control theory innovation and the use of new technology and method of cost control should be put to the first place. Therefore, in order to adapt to the new market competition, it’s undeniable that value chain cost control method will become the new trend of the theory and practice of cost control.DLL is a machinery manufacturing enterprises invested by Germany. With the progress in science and technology and changes in modern forms of market competition, limitation of the traditional cost control methods in the company’s overall strategy gradually appears while exposing many problems in the current DLL company cost control mode. In this new form of competition, although the theory and method of traditional cost control in economic activities played a huge role in the past, but it failed to be able to fully meet the rapid development of today’s market competition. Hence, this paper adopts value chain cost control method to analyze cost control management in DLL.Based on the domestic and foreign studies on the present theory of value chain and the value chain cost management, this paper put forward framework of value chain based on cost control. Through the analysis of internal value chain, the industry’s overall value chain, as well as the competitor’s value chain of enterprise, using the target cost method, this paper aims at framing an excavator manufacturing cost control of every stage based on value chain cost control theory. This paper selects DLL company as an example. First, it presents the current cost control situation of DLL. Then it analyzes the problems appeared in DLL’s cost control management. Finally it comes up with some effective measures to better the company’s cost control management based on the cost control chain method.