Research On Operation Cost Management In JH Company Ofcement Based On Value Chain

With the rapid development of social economy and information technology,the competition among enterprises becomes more and more fierce.Cost management,as a means of regulating and controlling the competitiveness of enterprises,is becoming increasingly important to enterprises.Traditional cost management theory and methods,with the development of the market,have been constantly updated and improved,so far has been more mature,into the bottleneck.Nowadays,with the rapid development of the market,it has been unable to meet the actual needs of enterprises,and enterprises are facing more and more problems.Therefore,it is an important task for the healthy development of the market to innovate the theory and method of cost management.Summarizing and analyzing the current situation of enterprise cost management,there exists the problem of universality that the content of cost management is too narrow.The focus of cost management is only on the production link.When controlling the overall cost of the enterprise,it is also limited to the enterprise itself,without considering the situation of the whole industry.This problem is also the key breakthrough point to achieve cost management innovation.The idea of value chain theory is to regard all business activities as the link of enterprise value chain,and all activities constitute the enterprise value chain.After introducing the concept of value chain theory into cost management,all activities of enterprises can be collected and controlled comprehensively,so that the general limitations of traditional cost management concept can be solved.JH Cement Company is selected as a typical manufacturing enterprise.The production process and process are complex,and there are many typical cost management problems.The research process is explained.Through the author’s on-the-spot understanding and data collection of JH cement company’s basic situation,the company’s problems are analyzed.In the process of cost management based on value chain for JH Cement Company,activity-based costing is borrowed from the internal value chain,which guarantees the feasibility of value chain analysis.In the part of vertical value chain research,PEST analysis is used to analyze the macro environment of the industry and provide useful information for strategic decision-making.Cement companies have regional characteristics,and the strengths and weaknesses of competitors,in the market feedback,will be particularly obvious,in the horizontal value chain,the competitors to compare strengths and weaknesses,the implementation of the strategy of learning from strengths to compensate for weaknesses.Through the analysis of JH Cement Company’s value chain cost management,the value-added and non-value-added activities are found out.Through eliminating the non-value-added activities,the cost control is realized.To evaluate the quality of customers and suppliers,carry out strategic cooperative relations,achieve the integration of supply,production and marketing,and improve cost efficiency.Introducing the theory of value chain into cost management has realized the breakthrough of traditional cost management,which meets the needs of cost management in the current environment.