Value Chain Cost Management

Construction industry is not only an important sector of material production, it is also a pillar industry in province development. It has made an important contribution in developing country's economy and improving people's life quality. In recent years, with the constant changing of domestic and international political environment, the strength of China's economy growing, economic and population environment, technological and the natural environment, social and cultural environment, the development of domestic construction enterprises are confronted with enormous challenges. Under the fierce competition, the construction enterprises try hard to realize the value maximization while they need to guarantee the safety and quality. The level of cost control has become the most important factor to measure the core competitiveness of construction enterprises. This thesis tries to analyze the status quo and problems of the present cost management of construction enterprises in China on the basis of the Value Chain Theory. Moreover, this thesis also adopts the idea of external and internal value chain to investigate the cost control of each phrase. So that this thesis proposes the cost control measure based on the Value Chain Theory, hope that it can do help for construction enterprises.This thesis by discovering, analyzing and solving problems to explain the cost of each stage management, and put forward strategic cost management theory, and introduce the Value Chain Management Theory to the construction enterprise cost management. The thesis combining theoretical research and case study method, to make judgments of the current overall level of construction cost management, and find out deficiencies in cost of construction enterprise management, to propose contents and methods in construction enterprises and the cost of each phase of the project management, combined with the actual company TY to analyze the situation of construction enterprises in Value Chain Cost management, and I hope the Value Chain Cost management of construction enterprises have a certain significance for construction enterprises.The thesis has six parts:The first part of this thesis introduces the research background and literature review and resumptively describes the research framework.The second part mainly describes Value Chain Theory and Operating Cost Theory in order to make a basis for the analyzing of the cost management of construction enterprises in the follow parts.The third part tries to analyze the status quo and characteristics of domestic construction enterprises and finds out the common problems during the cost management such as weak cost management awareness, poor management, and low ability to integrate resources, the lag forecast of the project's manufacturing cost, prior project cost management to enterprise cost management, pay more attention to manufacturing cost control than comprehensive cost management. From this analysis we can find the necessary of application Value Chain Theory in construction enterprises.The fourth part, through analyzing the internal value chain and external value chain, the author builds cost management system of construction enterprises on the basis of value chain. This system primarily includes changes in organizational structure, strategic cost management on the basis of external value chain, and comprehensive cost management on the basis of internal value chain.The fifth part employs a well-known construction company TY as an example to analyze the cost management of the entire process. Moreover, this thesis adopts its specific construction project as an example to analyze the application of costing in construction project.The six part are conclusion and outlook. The research conclusions and standpoints are received, and the decisions for further study in the future are put forward. The research method of this thesis is theoretical method, combined with case study. The actively explore of this thesis is made TY company as the platform, through surveys and interviews to analyze what achievements and shortfalls it got in the process of Value Chain Cost Management, to explain the feasibility and necessity of the Value Chain Cost Management in Construction Enterprise, hoping that it can have some reference in the construction enterprises.