A Study Of The Cost Management Model Based On The Value Chain Analysis

As the economy goes global and the reform and opening-up policy deepens, the internal environment of enterprises change rapidly, and they faces more and more fierce competition, and the competitors and substantive products exert more and more pressure on them, so the traditional cost management can not totally the development of enterprises. If the enterprises want to break out from this competitive environment, they have to maintain their competition advantages, so the improvement of cost management becomes very important, due to the unsuitability of the traditional cost management model, it is urgent to discover new cost management model suitable with the economic development and value management, and the development of value chain theory shed light on this.Based upon the perspective of value chain analysis and systematical analysis of value chain and relative cost management practical and research results, this paper proposes the application approach of value chain analysis in the cost management. with the qualitative and quantitative analysis, this paper illustrates the application steps of internal value chain, industrial value chain and competitors value chain, and come up with the model and approach of the application of the internal value chain and industrial value chain in the cost management. Taking the HYTP as an example, it puts the value chain analysis and its application model into the practice. Finally, it makes a overal conclusion and evaluation of the model and approach.The innovative points:(1) it constructs the internal value chain optimization model on the basis of activity-based cost method, it includes the value-added property and validity of single activity and simulates the relationship of two different value activities; calculates and optimizes the value chain cost by the least-square method;(2) in the vertical value chain analysis, it applies the analytic hierarchy process method to construct the optimal suppliers and customers selection.This paper tries to improve the validity of value chain research in the cost management through research and plays the directional role in its quantitative research.