Value Stream Perspective On Cost Control In Manufacturing

Traditional cost management theory in the history of traditional development cost must have played a positive role, but with the economic development, the traditional cost gradually show its irrationality.Traditional cost management is allocation of direct labor standards as a basis for scientific and technological advances and ever-changing variety of products to the traditional cost a huge challenge.Today, the cost structure of products has already changed, reducing the percentage of direct costs, indirect costs of the percentage increase, so the traditional direct labor cost method to the standard method of the allocation will result in unreasonable cost allocation and performance evaluation is not accurate.Inaccurate cost accounting in this price is bound to lead to development of manufacturing enterprise management chaos.Based on the shortcomings of traditional cost ideas to make the value stream for cost control, value stream thinking is a system of cost control ideas, the concept of value based on the entire production and business activities of enterprises are regarded as the value of the flow process.Value of the flow theory is that all the activities of the whole enterprise, at the beginning and end of the process, the value is increasing, the more it flows like a river of crude, and in the process of the activities are organically linked with each other,the systematic preparation of these links, the formation of value stream systems.In this paper, literature research and analogy method, research literature, combined with the characteristics of manufacturing enterprises, the first theory of value stream cost control in manufacturing design, from design perspective, targeting, control standards and drivers of fourto the specific study design issues, the final value of the activity center for the establishment of control system.Second, the value of flow theory of cost control in the manufacturing operation, from the value stream operating room functions, evaluation indicators and evaluation criteria described in three aspects, to analyze how to optimize the value stream, and finally to Balanced Scorecard as a value stream assessment approach.In summary, In short, we construct the value stream based on the modern theory of cost control, value stream to the use of modern theory of value creation from the start, to create and foster a competitive advantage as the goal, always from the perspective of optimizing the value stream to determine the overall cost of business location, and then implemented based onvalue creation and the provision of cost control.Cost control concept based on the value stream, from different areas, different levels, different angles chosen method of cost control in order to achieve "value creation - input costs - to create value," a virtuous circle.To some extent, as a new exploration of the basic ideas and methods to the modern methods of cost control and innovation of a breakthrough, In this paper, the modern manufacturing cost control for a new idea put forward.