M Suzhou Company Cost Control Research

Today,automobile manufacturing enterprises are in the rapid growth,as a result of the new brand and new models constantly emerging,consumers are more rational not easily pay for brand preferences,as an intermediate manufacturers facing the double pressures from not only the clients' price decline,but also raw material prices rising up,cost control is becoming the focus of enterprise management,and it is also a key to survive in the cracks,enterprise will have cost competitiveness to expand market share with good cost control.M Suzhou is a foreign company engaged in the production of automobile door latches,window regulators and power lifting gate systems,in the past as domestic auto industry was not mature and superstition of foreign enterprises,M Suzhou made tremendous growth but the growing speed slowed down since 2016,due to the price down from domestic strategic cooperated clients,the new platform tailgate latch L3,and high-end side door latch G5X are losing projects also,M Suzhou need cost management urgently to recover.This paper combined cost related theories into the actual problem of M Suzhou,following the 3 steps"describe,analyze and solve problem",from multiple aspects as design,procurement,manufacturing,quality control and discovered the design waste,components purchasing price is too high including inventory waste problems.from the analysis of the value chain,supply chain optimization and the angle of the lean thinking to solve problems,established the overall plan of the importance of information timeliness,at the same time standardized the "advance budgeting,controlling,closing" process.After current problems solved,the article attempt to make a permanent system and organizational culture in order to obtain the long-term and healthy growing of the enterprise,during the research process,the author have a long communication with management of M Suzhou,also tried a multi-angle thinking modes on the improvement actions and plans which could a positive impact on enterprise,writing down this article is also expected to share with the readers as a reference for further discussions.