Yantai Timken Company Cost Control Study

Both US financial crisis and European debit crisis are continuing to test global economic development. Even though US financial crisis impact was degrading, while since economy cycle ups and downs, multitudinous economists forecasted future global economy opinions vary. To face such indeterminacy economic environment, all enterprises within this economy cycle will be trial.This article will use Yantai Timken Company which was whole owned by the Timken Company which was the3rd bearing company in the world and500fortune enterprises in US as example, to analyze Yantai Timken’s pressure under the current market competition, and study its cost control strategy and action, to help the enterprise find direction on control actual cost increase since the loading drops down caused by the European debit crisis. At the same time the decreasing profit of customer which caused by market depression also to be rotate to product sales price decreasing or the risk of customer purchase order lost. It brings lots of puzzled to the leadership team of Yantai Timken Company for the future business strategy. To maximum enterprise profit, action to the market economic environment impact, dig internal potential capability within Yantai Timken Company, save energy conservation and reduce consumption, improve productivity to reduce internal cost, then to help Yantai Timken Company to find a way to maintain the continuous improvement will be the major direction of this article.This article will find the internal cost control actions through cost structure study and details cost analysis. To reduce customer complaints through critical quality control has caused too much quality cost. Yantai Timken Company need to find correct way to control internal cost, such as to cultivate associates lean thinking and usual practice, quality awareness and waste reduction, internal risk reduction, quality business BPR reengineering reduce appraisal cost, productivity improvement, organization optimization and talent management to reduce labor cost input. Through those problems solution will help Yantai Timken Company find the actions to help the long term strategy target. Hope the management measures can apply to the current dilemma and help Yantai Timken Company overcome the challenge and then enlarge market competitive superiority and influence.The major innovation of this thesis is that the writer hope to enterprise can link the cost control target with normal enterprise management. it is very important to establish enterprise culture to encourage whole associates involve in enterprise management from all sides to cultivate associates’protagonist awareness, to re-engineer quality control business process to reduce over quality control cost and to develop reasonable HR management system to reduce labor cost. The shortage is which the unsuitable content formulation and demonstration since the writer’s the little talent and learning, limit timing and energy. The writer hopes it will be improved continuously with the further study and research in the near future.