Mengniu Group Precision (PCM) Cost Research

With the development of market economy,the competition in various trades and occupations has been gradually aggravated.For the production-oriented enterprises,cost control has become one of the great victories to survive in the incentive competitions.At present,the cost management model of Chinese enterprises has undergone rapid changes under the background of sustained and rapid economic growth.Especially when China is gradually integrating itself into the globalization competition,the management concepts and models of Chinese entrepreneurs have undergone profound changes.As one of the leading enterprises in the dairy industry,Mengniu Group has also gradually expanded its business scope in recent years to carry out international interactive cooperation.Dairy products,as one of the important industries related to people's livelihood,have become increasingly competitive in the domestic and international markets.How to continue to maintain profitability under the severe situation and maintain the corporate status,and reduce costs under the precondition of ensuring product quality has become a major test for Mengniu Group.It is precisely because of the pressure of competitive pressures and the development of enterprises that Mengniu Group abandoned the traditional methods of extensive cost management and precipitates a set of "Precise Cost Management" models unique to Mengniu based on its own actual conditions for several years.With "PCM " as the abbreviation of "Precision Cost Management",the process relies on Cost Control,Cost Support,Cost Improvement,Cost Evaluation and other systems for full supply chain cost management.This paper deeply studies the content and management mode of the PCM management system in Mengniu Group.It mainly consists of four systems and sixteen modules.PCM specifically by the cost target system,cost support system,cost control system,cost evaluation system,through the interaction of the formation of pre-event,after the cost control cycle,the effective management of enterprises Cost Control.It is composed of cost target system,cost support system,cost control system and cost evaluation system.The target system is the primary module of PCM,which includes the whole process of target management,such as goal setting,target flow,target control and target evaluation,and guiding the company's goal management through the operation of the four modules.Cost support system as the second largest module of process analysis and monitoring cost management is also the strategic goal of the target,including cost analysis,cost reporting,cost training and cost informatization.Cost control system is the implementation of cost analysis,the fundamental guarantee for the improvement of the problem,including the cost of the original motivation point control and cost items to improve Cost evaluation system is to test the PCM of effective supervision,including evaluation tools,evaluation process,evaluation tracking,performance evaluation and so on.Although Mengniu has realized that enterprises need a comprehensive precision cost management from top to bottom and has been the first to lead the industry to start researching and implementing accurate cost management,there are still problems in research.First of all,there are problems in the cost management of the dairy industry,which are mainly manifested in the unreasonable cost structure,the lack of modern means to collect and allocate the cost,and the shortage of qualified personnel for the cost management of dairy products enterprises.The second,as a forerunner in the industry,Mengniu has many problems in the process of research and implementation of PCM.Sucn as staff awareness and lack of execution,measurement management tools are not detailed enough.Comprehensive analysis of the above problems,the root cause of the problem is that cost control is not strong sense of cost control means and tools unscientific system.In the aspect of cost management,Mengniu constantly explores and researches.In the future,Mengniu will focus on accurate cost management on the enterprise's strategic system.It will organically combine the cost of precision management and shareholder value,corporate budget,performance management system.Extensionto the entire industrial chain of the enterprise,combined with IT to achieve large numbers of scientific analysis and scientific decision-making,so as to give greater play to the ability of financial data to speak,and effectively promote the enterprise's cost management level.Through the deepening exploration and improvement of the precise management of PCM cost by Mengniu,the practical application value of Mengniu Group was enhanced.This paper hopes that other dairy companies to establish cost control theory play a certain reference.