Research On The Cost Control Strategy Of Slim Cigarettes In N Cigarette Factory From The Perspective Of Lean Production

In recent years,the Chinese tobacco industry has seen strong slim cigarette production and sales,which has become a new driving force for a sustainable and healthy growth to meet consumers’ demands.Slim cigarettes are now top selling products.With more and more manufactures put efforts on producing slim cigarettes,N Tobacco Company,a national wide recognized model manufacture,feels pressure on the fierce competition.How to strategically adapt to and grow in new environment and how to improve competitive positioning become the keys.The breakthrough is focusing on cost management,the core of business management.The cost per single box of cigarettes in N Cigarette Factory has presented the trend of growth during past years,such as raw material and auxiliary material.It’s quite practical to study cost control of slim cigarettes with lean production strategy in such context.The paper adopted theoretical methodology based on empirical investigation,starting from the theory of lean production and cost control strategy,applying the lean production strategy to the practical cost control of N Cigarette Factory and aiming to realize the cost optimization strategy.The paper starts from the current issue and existing problems of cost control in N Factory,including insufficient attention on cost control,low productivity,incapacity to maintain the equipment,pending comprehensive quality management and unreachable information flow.After proposing the issues above,the paper conduct fundamental analysis and put forward a proposal on cost optimization strategy to improve the integration between lean production concept and cost control practice.The optimized strategy includes the optimization of work flow,quality management,field management,equipment management,employee training management and innovative management.The paper presents supporting mechanism and implementation.It also provides a reference for cost optimization to industry by verifying and evaluating the effect of lean production strategy on cost optimization in N Cigarettes Factory.