Study On The Cost Management Of Manufacturing Based On Industrial Clusters

At this stage,the growth of economy has slown down,the domestic inflation exists still.Theprice of raw material and cost of labor force rise continuously.So cost management has beenpaid significant attention by many enterprises.The traditional cost management tends to takefocus on single enterprise,and as the growth of economy,the cost management mode hasconverted into target cost management from activity-based cost management,then into strategiccost management.The enterprises in the same areas begin to collaborate with each other afterthe change of objective environment.So industrial cluster emerges at the right moment.Whenenterprises transform integrated production into value-chain production,cost managementbecomes a new problem.This paper mainly discusses how to conduct cost management for the enterprises in theindustrial cluster based on this background.The existing literature mainly focus on theformation mechanism,optimization and upgradation of the industrial cluster.And more literaturemay focus on cost management,but there is litter literature collecting industrial cluster and costmanagement together.Thus,the range of the cost management is extended in this paper.Then thepaper analyses cost management from the following four aspects: production, design,manufacture and sell, all these analysis may be based on value-chain.After this,it proposes somemeasures for the enterprises.At last,it carries on case studies for each chapter.In view of theabove studies,this paper can reach the following conclusion:although enterprises in theindustrial cluster can benefit from economies of scale and economies of scope,development ofthe cluster may be suffocated because of the innate dependency of the cluster.So, enterprises inthe industrial cluster should collaborate with each other when producting.At the same time,thecluster should bring in Third Party Logistics,and make interchain replenishment for eachother.This can lower the stock level effectively,eliminate the Bull-whip effect.Also,the clusterought to enhance cluster marketing and overcome the boundedness of the cluster.After thecluster owns its regional trademark,the competitive advantage of the cluster will last for ever.