The Application Research On Lean Cost Management In The Electronic Industry

Chinese electronics industry is currently faced with some new changes in the external environment. How can electronics manufacturers survive and develop in the increasingly fierce competition is urgently needed to consider an issue. We know that businesses have three ways to obtain competitive advantage:low cost, differentiation, and centralization. These three pathways are also widely used by corporate strategists. Electronics industry has its own distinctive character compared with other industries. The advantage showed such as the higher performance of barriers to entry, more component suppliers and so on. The disadvantages are also obvious, such as generally low industry profitability, high degree of product homogeneity, fast product replacement, high pressure of search and development of enterprise and so on. These characteristics determine a strategy for low-cost the electronics industry to choose, becoming lower cost manufacturers of the industry. Only through this strategy can they be in an invincible position in the industry.As advanced concepts, the philosophy of lean cost management can be the core business thinking of low cost strategy. The application of the thought of lean cost management in cost management prerequisites to creating value for the customer and targets to reducing supply chain costs. It integrates of lean procurement, lean design, lean manufacturing, lean logistics and lean service technology in order to achieve optimal of supply chain costs. It combines lean thinking and the thinking of cost management. So that enterprises gain a strong competitive advantage. Lean cost management originated in the Japanese automobile industry and marked Japanese cars in the international market maintain a sustained competitive. Then it was widely used in retail and service industries. In recent years, other industries also widely use lean cost management. The advantage of its effectiveness began to take shape.The thesis is based on the theory of the lean cost management to propose the theoretical framework of lean cost management. This framework takes the planning of target cost, cost maintenance and cost improvement as the pillar. At the same time, the thesis illustrates those three aspects. According to the main features, the advantages, the disadvantages of the lean cost management and the own characteristics in the field of electronics, the thesis points out the application feasibility of the lean cost management in the electronic products manufacturers. The application feasibility study starts from the recognition of the internal value chain, divides cost center in accordance with cost drivers and establishes the corporations' long term strategic goals.From the explanation mentioned above, it can naturally sum up the mode of lean cost management which is suitable to the field of electronic products manufacturers. In the analysis of cost plan, we expound it from the three aspects of the market-driven, product level and functional level. We analyze the cost maintenance from the four factors of quality, production, personnel and products. Finally about the cost improvement, we propose the improved methods in every aspect according to the process flow of the electronic product manufacturers.The article discusses the experience of foreign electronic industry in the forth part, mainly listing some of the practices of Japan and the United States. This part of article, which focuses on target costing planning in Japan, is represented by Dell to introduce the concept of zero inventories and eliminating waste practiced by electronic industry in the United States in the process of implementation of lean cost management The inspiration of the successful experience is that enterprises should establish the culture for the implementation of this cost concept and the interior of enterprises should be able to meet the technical and structural requirements.Lean cost management breached through traditional cost management on the basis of research to practice in the manufacturing of electronic products, pointing out that how to implement lean cost management manufacturers of electronic products under the new period. The problems exposed in the process of carrying out lean cost management are also evident. For example, staff initially is difficult to accept such a new concept of the new cost management, and the inherent limitations of the current status of enterprises hindered the implementation of lean cost management, and effect of coordination between departments is poor. There are many reasons causing these problems, such as the restrictive of manager system, inappropriate positioning of customer value, not strong staff awareness of cost control and so on. How can electronics industry overcome their disadvantages to imply lean cost management better? First, the enterprises should form a cross-functional team. Lean cost management is a comprehensive cost management Involving coordination between various departments. If the enterprise can form a cross-functional team, unified training, the implementation will be able to receive good results. Second, enterprises should focus on creating the implementation of the corporate culture for implementation of lean cost management; foster a people-oriented concept, optimizing the implementation of lean cost management environment. Finally, enterprises should increase investment in science and technology, improving the manager's "immunity" to establish safeguards of lean cost management. Customer demand should also be understood, so that enterprises will be targeted on research and development.In China, there are many researches on lean production. The researches on lean cost management are still less. So the theory is worth further research for domestic and foreign scholars to be better used in practice. Electronics industry has characteristics of short product life cycle, update speed and higher technical input. These characteristics determine the broad application prospects of implying lean cost management in the industry.