Research On Cost Management From The Perspective Of Value Chain

Since the reform and opening up,China's economy has taken off continuously and developed at full speed,and China's steel industry has been springing up like bamboo shoots after a spring rain.Since 1996,China's steel output has been ranked first in the world.China imports a large amount of iron ore from abroad every year.At the same time,the demand for iron ore in the development of other countries' steel industry is also rapidly increasing,which has led to an increase in international iron ore prices.The direct impact of rising international iron ore prices is the increase in the cost of steel companies.At the same time,China's steel industry still has many problems,such as excess steel capacity,export barriers,steel oversupply,lack of innovation and so on.The competition in the industry is getting worse and worse,with high product homogeneity,so the competition mainly focuses on product cost.Therefore,in order to achieve the company's turnaround and increase profit margins,steel companies must obtain cost advantages.On the one hand,enterprises can shift the focus of cost management to a full range of value chain cost management.The rapid development of economy requires iron and steel enterprises to carry out internal rectification,and enterprises' cost management system and management methods must learn from excellent enterprises and absorb the essence,thus producing value chain cost management suitable for different enterprises.On the other hand,by broadening the scope of cost management,value chain management extends from the internal to the external value chain management.Through stable supplier system,efficient production process and smooth sales channels,each activity in the value chain can be given full play to the best point,so that the overall management of product costs,can significantly improve production efficiency,optimize asset allocation,and enhance the competitiveness of the enterprise.The article is divided into six parts.At the beginning,the article elaborates the research background and significance,and reviews the related research of value chain and product cost management by domestic and foreign scholars.This article uses two more common research methods that conform to people's cognitive laws,namely theoretical analysis and case analysis.Secondly,the article introduces the related concepts and theories of product cost management from the perspective of value chain.The third part introduces the background of Angang Steel,including the company's general situation and the motivation and basic work of product cost management from the perspective of value chain.The fourth part combined with the case of product cost management of Angang,in-depth analysis of the value chain perspective of Angang steel in the stage of product development,procurement,production,sales,product cost management of the four parts of the way and evaluate the effect of its implementation.In the product development stage,the paper analyzes the specific implementation measures of Angang Steel's confirmation of target cost,introduction of IPD research and development model and value engineering analysis of products.The research finds that these measures reduce the design cost,test cost and related hidden cost in the research and development process.In the product procurement phase,the cost management in the procurement phase is mainly discussed from the transportation strategy,supplier management and timely management mode,which can reduce the transportation cost,quality cost and storage cost of the product.In the production stage of the product,the standard operation method,5s refined management and operation cost management adopted by the enterprise were studied.The study shows that these cost management methods can effectively control the direct material cost,labor cost and manufacturing cost.In the product sales stage,the impact of “market + media” advertising strategy,multi-level logistics network and innovative “five-in-one”aftersales model on sales cost was discussed.These methods not only improved the costeffectiveness of product advertising,but also reduced logistics Cost and customer service costs.Based on the above four stages of research,the effects of product cost management of Anshan Iron and Steel Co.,Ltd.were evaluated from three aspects: product cost level,financial performance and enterprise competitiveness.The fifth part summarizes the experience and important issues of Anshan Iron and Steel's product cost management through the analysis of the product cost management approach and its effect of Angang Steel in the perspective of value chain.The sixth part combines the previous case analysis to draw the conclusions of the study and summarize the full text.By analyzing the specific measures and effects adopted in the cost management process of Anshan Iron and Steel Co.,Ltd.from the perspective of value chain,the paper finally concludes that Confirming product target cost,strengthening supplier management,using operating costs,and optimizing marketing system are important experiences in product cost management from the perspective of value chain.At the same time,the concept of product cost should be deeply implemented in the minds of every employee,and it must be accurately understood and fully supported by all employees.In addition,in order to implement cost chain product cost management more effectively and scientifically,an efficient cost management information system should be established,using the Internet and management systems as support,collecting comprehensively and analyzing enterprise-related information.In addition,we must handle the management relationship of comprehensive control and key control,grasp the key control links,and aim at it.Only in this way can we guide the achievement of established cost management objectives.