Research On Value Chain Cost Management Of XP Metal Manufacturing Company

At present,influenced by the international financial crisis,China's steel industry development has markedly slowed down,and the market demand is also correspondingly weakened,which greatly restricts the healthy development of the economy of our country.Faced with the excessive capacity of steel industry,rapid expansion,serious product homogeneity and other issues,the government points out that we should eliminate backward production capacity,adjust product structure in order to promote enterprises transformation and upgrading.The metal manufacturing industry must change the development concept and direction,develop their own industry,strengthen internal cost management,coordinate external environment and integrate value chain.Therefore,value chain cost management is helpful for enterprises to better adapt to the change of competitive environment,maintain a competitive advantage of low cost and realize the strategic objectives.This thesis first present the situation of value chain theories,cost management theories and value chain cost management research,deeply learn the related basic theories and systematically understand and analysis cost management methods.Second,regarding XP company as the research object,this thesis deeply investigates the company,combined with the production characteristics and businesses,analyzes the company's present cost management situation from the perspective of value chain,and finds that the main existing problem is that cost management lacks the overall view.The procurement costs and operations cost are relatively higher and indirect cost allocation is not reasonable,putting out the necessity and feasibility of the application to value chain cost management.Then,based on XP company's strategic objectives,this thesis makes a comprehensive research on the value activities of the company from the internal value chain and external value chain,using activity based costing method and value coefficient analysis,distinguishing the value-added or non value-added activities in order to promote the optimization and coordination of the value chain.Finally,through improving the cost accounting method,strengthening the internal value chain cost management,this study pays attention to the relationship between the external value chain,establish security mechanisms and other measures to solve the XP company cost management problems,and ultimately improve the core competitiveness of enterprises.Value chain cost management is guided by the company's strategic objectives,including internal and external two aspects.This thesis through the analysis of the main value activities of XP company and related upstream and downstream enterprises value chain,on one hand,solve the enterprise cost management problems,enhance competitive advantage,and on the other hand,provide a good reference for the similar enterprises.