Research On Production Cost Management Under Lean Production In Veken Enterprise

Production cost management is an important part of business management; only bystrengthening cost management can enterprises effectively reduce production cost andmaintain sustainable competitive advantage. Production cost management concept under leanproduction is an advanced cost management concept, which is consistent with the idea of multivariety and small batch of production for modern enterprise and it can be the core idea forenterprises to implement low-cost strategy.This paper expounds the application of activity-based costing management（ABCM） inVeken enterprise, which has an impact on strengthening enterprise management and optimizingallocation of resources. First of all, it provides guide for application of ABCM in Veken byexploding ABCM theory and methods，then analyses the present situation of cost managementand points out the necessity and possibility for application of activity-based costing management inVeken enterprises. Secondly, the article puts forward the ways to increase operation value andefficiency by analyzing factors of operation cost accounting of Veken enterprise. And then, it putsforward process balance method to reduce operation cost through analysis of production processof Veken enterprise in use of theory of constraint. In the end, it sets up the model of product mixwith the lowest total cost of production，on the basis of the data provided by activity-based costmanagement and the process balance analysis.The conclusion of this paper is helpful to solve the problems of production costmanagement of Veken enterprise, and to improve management level of the production cost inVeken enterprise, and enhance the core competitiveness of enterprises.