The Application Of Value Chain Theory In Manufacturing Enterprises’ Cost Management

Economic globalization is a double-edged sword, it is for enterprises to open up a huge market, but also intensified competition among enterprises. With China’s accession to WTO, the gradual opening of the world, the multinational companies have poured into our country, its not only in the capital, technology, scale, take advantage and superior management.2008 by the U.S. subprime mortgage crisis triggered by the global financial crisis, although the damage is relatively small in China. However, there are still a lot of the Yangtze River Delta to the export-oriented SMEs, due to neglect and the relationship between external partners, resulting in the ability to withstand market shocks is not strong and bankruptcy. How, in this changing market to survive, how to squeeze in under the monopoly of foreign growth, it will be a common problems faced by domestic enterprises.EZ is a large state-owned heavy equipment manufacturing enterprises, since the company is production orders, production and management aspects of it relates to more complex production process, so to improve their business processes will greatly enhance the company’s production and management efficiency. EZ also has a large number of companies and their key suppliers and customers, we must strengthen the relationship between upstream and downstream management. Therefore, I believe that the company introduced in the EZ theory of value chain management is particularly important.This article is divided into eight chapters, the first chapter is introduction, the main thesis written on the background, meaning and ideas for thesis research brief; second chapter is literature review; The third chapter is the theoretical value chain system, mainly on the theory of the value chain based on theoretical framework and methods; fourth chapter points out the EZ company advocates the significance of value chain management and the necessary conditions; fifth chapter to chapter VII of the key elements for the paper, mainly for the case of procurement, production and business links that exist issues to be analyzed and proposed solutions; Chapter VIII conclusion and enlightenment. In this paper, EZ company as a model of value chain management theory in the heavy equipment manufacturing industry in the application of the enterprise to explore the basis for the implementation of value chain management, premise, approach, and necessary measures. This use of the value chain of other industries and enterprises play a reference theory.1. Help to improve understanding of the value chain management. Value chain theory is not only a strategic thinking, but also a way to apply to the actual work of the effective methods, but also whether the enterprise business processes and efficient criteria.2. Contribute to value chain theory in the promotion and application of other enterprises. In this paper, the problems in-depth case analysis, the proposed solutions are more feasible, and how to effectively manage the value chain to carry out a comprehensive exposition of the work, to improve corporate management level to provide follow the road.