The Research On Cost Control Of YT Company Based On Value Chain

Petrochemical industry as the basic industry of the country,has been supported by national policies.According to the China petroleum news center,the petrochemical industry's prime operating revenue in 2018 was 12.40 trillion yuan,which was increased up by 13.6% year on year.And the profit margin of prime operating revenue in 2018 was6.77%,which was the highest figure since 2012.However,the profit and loss differentiation in the petrochemical industry is still serious.By the end of June of 2018,18.7% of the petrochemical industry's enterprises above the scale,whose annual main business income is more than 20 million yuan,have lost money,and the loss amount is52.31 billion yuan.Compared with 2017,the number of enterprises above the scale decreased by 1666.Due to the low market demand and severe overcapacity in the traditional petrochemical industry,small and medium-sized petrochemical enterprises are facing great competitive pressure.The cost advantage is a significant part of an enterprise's competitive advantage.Under the premise that the production equipment of the factory cannot be changed in the short term,the enterprise must strictly control the cost in the process of production and operation to achieve the low-cost competitive advantage and the strategic goal of enterprise development if it wants to obtain the competitive advantage.YT company,as one of the small and medium-sized petrochemical companies in Liaoning province,is facing the pressure of industrial competition.At the same time,the company has some problems,such as the weak awareness of cost control of the management and employees,and the inconsistency of cost control methods with refined management,which make the cost of the company unable to be effectively controlled.Based on the value chain theory and cost control theory,this paper takes YT's cost control as the research object,and through the elaboration on the current situation of YT's cost control,analyzes the existing problems in the company's cost control.At the same time,according to the petrochemical industry value chain of enterprise production and management form,this paper analyzes the company's internal and external value chain,and integrates the internal and external value chain.At the same time,the value of the various stages of the production and operation of YT company activity cost is analyzed,mainly including procurement phase,polymerization production,packaging,storage and transportation and sales service stage of the value chain cost analysis,this paper further builds the applicable to the company's value chain cost control system,and puts forward the implementation of the safeguard measures of the value chain cost control system.By establishing the value chain cost control system,this paper expands the scope of YT's cost control so that it can better control the overall cost of the company and gain competitive advantages.At the same time,this paper also provides some reference value for other petrochemical companies to implement the value chain cost control method.