The Value Chain Cost Analysis And Control Of Shandong Wangchao Thermoelectricity Co., Ltd

The reform of the electric power industry in china has intensified the market competition in this field. This kind of competition exists commonly among the power enterprises. In essence, the competition of enterprises is mainly the competition of production cost. As a large-scale power generation enterprises in the southern area of Shandong, Wangchao Thermoelectricity Co. Ltd can provide adequate power and thermal protection for the production and living of the whole area. But the company is currently facing enormous competitive pressure, In this competitive environment, the cost structure of the enterprise must be fully analyzed to setup the low cost strategy. This has important practical significance for the survival and development of the company.This thesis first describes the purpose and significance of the study, Then briefly introduces the relevant theory of the domestic and foreign research status, in addition to a detailed overview of the value chain and cost control theory. This thesis also studies the company’s cost magement issues from the perspective of value chain analysis, gives In-depth analysis of theoretical content and provide method for the high degree of integration of theory and cost management. After a thorough investigation of the company, The implementation of a comprehensive scientific research was carried out on the internal and other forms of the value chain, the method of reducing the production cost of enterprise based on the value chain was found by using the method of activity-based costing. At last, this thesis summarizes the previous studies. From the view of value chain, the improvement measures are given for the enterprise to reduce the production cost, This is conducive to the company to optimize and improve the operation of the power generation process.Value chain analysis is a research method which is carried out from the perspective of strategy. The value chain analysis is divided into three methods, which are based on the internal, vertical and horizontal analysis. Using the analytical tools to make an in-depth analysis of the value chain of the company, the company is able to determine which production operations are of high energy consumption and low efficiency. By adjusting these operations, the purpose of reducing the production cost can be achieved and the market competitiveness of the company is enhanced.