Steel Manufacturing Enterprise Cost Manahgement Under The Value Chain

The rapid expansion of steel manufacturing companies in China after the reform and opening up, but investment in raw material prices and the international iron and steel enterprises in China has intensified competition in the steel market, the iron and steel enterprises in China need to abandon the traditional cost management methods, and broaden the cost management. Value chain cost management methods have emerged to improve enterprise management, and control the cost of doing business, enhance cost competitive advantage shows its superiority.Based on analysis of existing cost management, cost management and value chain research literature, the article first proposed the concept and content of the value chain cost management, laid the theoretical foundation for the construction of the following cost management system. Secondly, briefly production characteristics, cost analysis and cost management status of China’s iron and steel manufacturing enterprises, leads to the need for cost management perspective of the value chain of steel manufacturing companies. Again, building the steel enterprise value chain cost management system, which is the focus of the article. Mainly from three aspects of the value chain of internal and external horizontal value chain and external longitudinal value chain optimization conduct a comprehensive analysis of the cost of activities of enterprises. To build internal value chain of steel manufacturing enterprise cost management based on the internal value chain optimization, analysis and optimization of various value activities to reduce costs:external horizontal value chain optimization-based cost management activities, through the analysis of the relative values of the competitors benchmark learning methods to enhance the level--of-enterprise cost management; based on the cost of the external the longitudinal value chain of management, the use of the analytic hierarchy process to determine the best partners, and through strategic alliances and other methods to optimize the upstream suppliers and downstream vendors to form enterprise the cost advantage:evaluation of the effect of the value chain, the implementation of cost management system, in theory, fuzzy comprehensive evaluation method to evaluate its management effects "analysis-optimization-evaluation process. Finally, Company A is selected as a case study to analyze the feasibility of the application of the value chain cost management in real enterprise.