ZHJA Co.Ltd. Cost Management Based On Value Chain Optimization Analysis

At present,the world economic development possesses the characteristics of globalization,modernization and high speed.The change of external economic and political environment brings greater challenges to the modern management of enterprises.The development of enterprises is the process of using the core competitiveness to continuously transform advantages into revenues and putting the profit into operation as well as expansion.One of the core competitiveness of manufacturing enterprises is cost management advantage.Academic circles research it continuously in order to put forward suggestions and schemes to improve enterprises’ cost management.With the help of these optimization researches,enterprises can make cost management improvement that suit their own characteristics,which is beneficial to gain more market competitiveness.This paper applies the theory of value chain cost management to study ZHJA Co.,Ltd.Firstly,this paper describes the current cost management of the case company,and analyzes,based on financial data,the problems mainly including: the insufficient special project investment in R＆D,the high quality inspection cost of material procurement and the low efficiency of receiving and accounting,the long production waiting period of products,the insufficient workers’ manufacturing technology,the rough financial accounting,the not-enough competitive price of sales service.Then,using the value chain analysis tool,this paper clarifies the value-added activities and non value-added activities of the case company,and designs the optimization scheme of value chain cost management in ZHJA Co.,Ltd.For the internal value chain,this paper puts forward suggestions: increasing the special project investment in R＆D,improving the degree of production mechanization,strengthening technician training,clarifying the differentiation and internationalization marketing position,and strengthening the information sharing of the whole value chain.For the external value chain,this paper puts forward optimization management schemes for suppliers and customers respectively.These schemes can effectively solve the problems existing in ZHJA Co.,Ltd and provide help for the enterprises that similar to the case to maintain long-term advantages in market competition.