Application Research Of Lean Cost Management In JW Company

Since the beginning of the 1990 s,China's machinery processing industry has entered a new era of industrial upgrading with the increasingly fierce competition environment.Up to now,China has issued a series of important plans such as "Made in China 2025".In the new economic development environment,small and mediumsized enterprises play an important role in realizing the strategy of manufacturing a strong country and the transformation and development of manufacturing.As small and medium-sized manufacturing enterprises gradually introduce mechanized and informationized equipment,and use lean production methods and value chain analysis methods,the shortcomings of traditional cost management are gradually revealed,and it has been difficult to meet the needs of modern manufacturing development.JW Machinery Company is a market ability of small and medium sized machinery manufacturing enterprises.The company has developed an effective quality control system and enjoys a high reputation in the industry.However,there are still some problems in cost management,so it is necessary to improve its cost management to maintain a favorable competitive advantage.Through the many field investigations of JW Company,combining the domestic and international research results and analyzing the operation activities of the various links in the supply chain of the case company,this paper finds that there are some problems: missing design cost management content,inadequate procurement cost management,extensive production cost management,rough accounting of the sales process,after-sales service cost and revenue mismatch problem.The external reason is that the traditional method is difficult to continue due to changes in the external environment of the enterprise.The internal reason is that the concept of cost management is very broad,the content of cost management is lacking,and the division of cost responsibility is blurred.It makes the actual cost information from the enterprise can't provide support for enterprise management decision-making.Based on the framework of lean cost management,technical tools and the necessity and feasibility of implementing lean cost management for JW,this paper proposes relevant solutions and application solutions for JW's cost management.This paper analyzes the results of a workshop in November 2017 as an example,and proposes safeguard measures for the scheme.The research in this paper starts from the actual situation of JW Company,combines lean cost management with strategic cost management,value chain cost management and operation cost management to find out the problem of case company and propose improvement plan.The research content not only improves the system of cost management of JW,but also helps JW to improve the status of cost management.It provides support for corporate service pricing and production capacity management,and is also a good reference for other similar small and medium-sized manufacturing companies.