Research On Lean Cost Management Of T Steel Corporation

As the basic industry of our country’s economy,the steel industry has great influence on the development of our country’s economy.In recent years,under the increasingly fierce industrial environment,with overcapacity and environmental protection policies,China’s steel demand has been declining for several consecutive years.Production conditions have been affected,and steel prices have fluctuate.The work of “cost reduction” and “increasing profits” is undoubtedly the direction in which iron and steel enterprises must tap into the potential of enterprises.The use of lean management thinking in the management process of enterprises and the formation of a new management model combining lean thinking and cost management have a profound impact on the long-term sustainable development of China’s steel companies.Under the pressure of cost,the lean cost management model has been gradually promoted in China’s steel industry.This paper has conducted in-depth analysis and research on the entire process of implementing lean cost management in T-Steel by means of case analysis.After T company introduced the lean cost management mode,it adjusted the company’s main product structure and implemented benchmarking and potential tapping to reduce product costs.The company has established its strategic goal of “going to a lean road and realizing the company’s sustainable development” and adheres to the strategy-oriented lean road of “doing fine,specializing,and strengthening”.Through in-depth understanding of the relevant theories of lean cost management,this paper identifies the connotation,characteristics,and elements of lean cost management,and introduces the specific implementation measures for lean cost management of T Steel Corporation.First of all,this article combs the concept of lean cost management including the five links of the supply chain,and elaborates the relevant theoretical basis of lean cost management.Secondly,it introduced the general situation and existing problems before the implementation of lean cost management by T-Steel,such as the disconnection of product development and cost control,the asymmetric information in procurement,the unreasonable accounting method in production,and the unclear responsibilities.Then,the main contents of the application of lean cost management of T company were analyzed,and the specific measures of R&D,procurement and production were emphatically illustrated.At the end of the article,from an overall perspective,the implementation of the implementation of the lean cost management model of T-Steel can provide reference for other companies.For example,strategic management and cost management should be organically integrated,and the business department and the financial department should strengthen collaboration and market Guidance to fully meet customer needs,and hope to provide some theoretical and practical help for China’s steel industry and other industries to effectively respond to increasingly fierce market competition.