Research On Strategic Cost Management Of CSIMC

Today in the environment of economy and marketing, enterprises are facing a strange and complex survival condition in china. In order to strengthen competence, it is more important to heighten the cost management to the strategic stature for enterprises. Strategic cost management (SCM) is the extension of the cost-driver, is the enrichment of the methods in traditional cost management. And is the combination and connection dot of strategy and cost management, is a logic process that using strategic cost information to carry though a strategic decision-making and organize the cost management under the cost strategy for the competitive strategy. As a thick film circuit corporation, now Chongqing Sichuan Instrument Micro-circuit Co, Ltd (CSIMC) SCM research just starts under this special environment.Brought to bear the method that combines the theory research with practice, we have researched on the SCM of CSIMC. First we researched on the theory frame of SCM, particularly worked over the environment, objective, characteristic, proceeding, and analysis methods of SCM. On the base of study of inner and exterior environment of CSIMC, we made a complete analysis for the value-chain and strategy orientation, and confirmed the collectivity strategy and competitive strategy and homologous cost strategy. For the sake of realization of strategy goal, to define the emphasis of cost management, to control the cost to accord with the plan, to assure correctness and validity of the cost management strategy, we analyzed all the cost of CSIMC with method of structural cost driver and executive cost driver. Afterward consulted the result of the researching on SCM, a core competence system was finished. At last, we discussed outstanding achievement examination of the SCM. So, through the researching we pointed out a method and provided a project of the SCM for CSIMC, expected to reduce the operating cost, to heighten the competence and to maintain the competitive advantage, finally to keep the ability of make profits in a long time.