Research On Cost Management Of Power Equipment Manufacturing Enterprises Based On The Value Chain Theory

With the development of the market economy and exacerbation of the competition,cost management has become the core of modern enterprise management. Modern enterprises want to survive and develop, they must strengthen the cost management.The efficient Cost management, which makes the enterprise with the lowest cost obtains the maximum economic benefit, can effectively reduce the cost.Cost management fundamentally determines the competitiveness of enterprises. The quality and efficient cost management system,that is established by modern enterprises,gets unceasing innovation.To maintain the competitive advantage of enterprises and Continuous cost reduction can also be achived by the system.After a period of rapid development, extensive cost management style has been unable to meet the demands of the development of Chinese equipment manufacturing enterprises.At present, many of the equipment manufacturing enterprises are still using the traditional cost management methods, they ignore the cost projections and control, contempt technical management costs, resulting in a serious waste of costs. So how to strengthen the cost management,and how to improve the level of cost management has become the primary problem to be solved of entrepreneurs.Based on this, this thesis is an attempt to make a preliminary discussion on this subject.Based on the enterprise obtains the cost advantage and competitive advantage for the purpose, taking the value chain as the platform. And we are targeted for cost management. Cost management will be integrated into the value chain, through in-depth research and Analysis on the value chain theory and the theory of cost management. In theory, trying to build a new model based on the value chain cost management, providing cost management method can actually be applied to achieve sustainable competitive advantage of modern enterprises.This thesis focuses on the transaction costs between supply and demand enterprises, as well as cooperation between enterprises of supply and demand, I think this is the direction of the latter focused on cost management. At last,this thesis takes RT company,a power equipment manufacturing enterprise, as a case study. The practical application of cost management methods, as Target Costing, Value Engineering and Kaizen Costing, to strengthen the operability of the content.