Research On Lean Cost Management Of S Company Based On Value Chain

Lean cost management is one of the most effective management methods in the world today.Its lean cost management model has the function of optimizing and reshaping the process system,promoting effective synergy among key nodes of the value chain,promoting product quality iteration and upgrading,eliminating waste,etc.,realizing precise control of costs,helping enterprises to achieve cost reduction and increase efficiency,and improving the comprehensive strength of the market.It also has a good effect on promoting corporate culture,activating organizational vitality and empowering employees.The combination of hard power and soft ability is more conducive to the long-term development of enterprises,so lean cost management has a very important significance for modern enterprise management.In the current economic trend,the food manufacturing industry is facing the problems of declining consumer power,gradual downward adjustment of ex-factory prices,overcapacity,imbalance of supply and demand,opposite trend of growth of main business income and profit,further compression of profit,and increasing homogenization of products,etc.Combined with the rapidly changing market environment such as increased competition in the industry,the ability of enterprises to control costs is increasingly tested.Company S belongs to the food manufacturing industry in the segment of frozen drinks industry,is a nearly twenty years of history of the ice cream production company.At the end of 2020,the company’s leaders made a decision to try to implement a lean cost management model,and the company’s total costs fell by 2.05% year-on-year,with some success.However,because of the short time of adopting the lean cost management model,many aspects of procurement and warehousing,production,sales and logistics are still not perfect and need to be further optimized and improved.Based on the above macro trend and historical background,the author of this paper explores and researches the whole chain of S company’s value chain from raw material procurement and storage,to middle production and processing,to later sales,logistics and distribution,based on the research of domestic and foreign experts and scholars in lean cost management,taking lean cost management as the entry point and combining the value chain of S company’s actual production and operation activities,by The real-life problems of lean cost management methods in Company S are analyzed.Combined with the field research of Company S,we start from the key nodes of the value chain,such as procurement,production,sales and logistics,to explore the shortcomings of the current lean cost management model of Company S and the root causes of the problems.The results of the field study were used to propose optimization suggestions for the lean cost management model.Based on the study of Company S,the article concludes that the adoption of lean cost management thinking can help the company to understand the essence of the problem.By analyzing the value chain of Company S,we can effectively and precisely identify the problems that need to be solved under the current lean cost management model,explore the root causes of the pain points from the surface of the business,and then propose optimization suggestions and solutions to reduce the costs incurred in all aspects of the company,so that the company can take the competitive advantage in terms of costs and improve its overall competitiveness.At the same time,the lean cost management model can also effectively integrate upstream and downstream resources in the value chain,make the enterprise stand out in the rapidly changing market environment,accelerate the effective control of the key nodes of the enterprise value chain,stimulate organizational vitality and employee motivation,reshape the enterprise management system in an effective way,and ultimately achieve the purpose of cost reduction and efficiency.Finally,in order to ensure the smooth implementation of the optimization program,the three aspects of organization,system and human resources were put forward to ensure the smooth implementation of the Lean Cost Management Optimization Program in Company S.This will enable Company S to make continuous improvements and promote the achievement of long-term development goals.