The Application Discussion On Lean Cost Management In Hangang Steel Company

With the increasingly fierce market competition,the enterprise only has a strong competitive advantage to survive and develop,and one of the necessary conditions to gain the competitive advantage is the low cost operation.The core problem of the modern enterprise management strategy is to constantly perfect cost management.The main competition among modern enterprises has extended from traditional product and service competition to the whole supply chain competition,the target of cost management is not satisfied with chasing short profit,traditional cost management idea has gradually become into lean cost management idea.Lean cost management is combined cost management idea with lean idea,aimed at reducing the cost of enterprises and receiving strong competition.The premise of lean cost management is providing value for customer,the goal is reducing supply chain cost.Lean cost management is a mixture of lean procurement,lean design,lean product,lean logistics and lean service,so as to achieve optimize supply chain cost.Lean cost management originated from Japanese Toyota Moto Company,and promoted gradually in the Japanese automobile industry.The implement of lean cost management make Japanese automobile remain relative high competition.In recent years,lean cost management is widely used in manufacturing and services,and the advantage of its effectiveness has been proved.Iron and steel industry,as the basic industry of the economy in our country,plays an important role in the national economy.At present,the implement of lean cost management has gradually become a trend,the discussion of lean cost management is the inevitable outcome of the implement of lean cost management in iron and steel industry.Although the application of lean cost management in iron and steel industry brings positive effects,there are still many problems,therefore,the application of lean cost management can not achieve the theoretical results.The article has an in-depth discussion of Hangang Steel Company of lean cost management by normative analysis and case analysis method.First of all,the paper sorts out the relevant concepts and theories involved in the lean cost management,which mainly discusses the concepts,characteristics and basic elements,main contents and theoretical basis of lean cost management.Secondly,the thesis take Hangang Steel company for example based on the relevant theory of lean cost management,and briefly introduced the current situation of Hangang Steel Company and the basic situation of lean cost management;Thirdly,the paper discusses the problems existed in Hangang Steel Company of lean cost management and analyze the reasons;At last,we come up with some countermeasures and suggestions to improve Hangang lean cost management,hoping to provide help for China’s iron and steel industry to effectively deal with the increasingly fierce market competition.The main conclusions of this paper are as follows: Firstly,lean cost management is a kind of management style which aims at to maximum reduce the occupied resources enterprise’s produced,eliminate all waste and reduce enterprise’s operating costs.Secondly,taking Hangang for example,China’s iron and steel industry in lean cost management still exist many problems,the reasons for these problems lies in the enterprise has not been able to use lean cost management effectively improve the lean production and lean procurement,lean logistics and so on,which lead to cost improvement effect is not obvious;Thirdly,in order to change the current situation and win the competition strength,enterprises should implement lean cost management in the all aspects of value chain cost,strengthen the cost of product operation process of lean cost management,optimize the procurement process,improve the logistics system in the process of the application of lean cost management.Only in those ways can enterprises achieve the goal of reducing the cost to the greatest extent;Fourthly,the successful application of lean cost management must create advanced lean cost management culture,improve the lean cost management organization,construct better information sharing management system to ensure the implementation of lean cost management from three aspects of culture,organization and support system.Both domestic and overseas dedicated to the problems of lean cost management in iron and steel enterprises is relatively rare,however there are many articles about enterprises cost improvement,These contents can be reference to the study of the problems of lean cost management in Hangang.Therefore,the research results of the iron and steel enterprise has universal applicability,especially for the traditional large iron and steel companies has strong pertinence,can be used as a reference for lean cost management.