Research On The Improvement Of HC Company Cost Control Based On Lean Production Theory

This paper discusses that small and medium manufacturing enterprises,like HC,how to improve the level of cost management,using Lean production theory who’s score idea is"eliminate all wastes".First of all,I sort out the framework of the lean production theory after reading a lot of articles and give a detailed account of the main points of the theory.This part lays the theoretical foundation for case analysis.Secondly,this paper introduces the current situation of HC in the form of cases and analyzes the cost of the company in many ways such as production site,design,procurement,manufacturing and warehousing.After summing up,the cost management of HC needs to be improved in many aspects,like lacking of the overall concept,lacking of refinement methods and lacking of control basis.Cost control in HC now is only a simple local control,and dose not play the overall effect of internal and external whole cost improvement on the basis of value chain theory.And cost control of HC can’t be covered to each node,such as production site,design,procurement,manufacturing,warehousing,resulting in the cost of measurement is less than the actual occurrence of the enterprise management data.And cost management is only dependent on the financial data feedback that always be lagged,and dose not form a full participation in the management atmosphere to achieve real-time control of costs.Finally,based on the lean production theory,the paper puts forward some suggestions to improve the cost management level of HC,using lean production cost management tools.This paper expounds the theory of lean production can play a guiding role in cost management and any enterprise can find the right way to improve the cost situation under the guidance of lean production theory,no matter how the company ’s personnel quality and management level is.Lean production theory is not only a specific way to guide the cost management,but also a guidance to meet the actual needs of enterprises.This paper not only has a direct significance for the cost management of HC,but also provides a new way for the small and medium-sized manufacturing enterprises in China to seek effective ways of cost control.