K Elevator Manufacturing Enterprise Cost Control Research Based On The Value Chain

With the accelerating urbanization process in China, the real estate market continues to heat up, coupled with the growing number of government and other public construction investment, which promote prosperity and development of the elevator market. However, with the increase in elevator business, competition has become increasingly fierce in elevator industry,so corporate profits are gradually reduced,and many companies achieve profit era. The traditional internal cost control become stretched.Therefore,in order to increase corporate value creation and competitiveness of enterprises, we introduce the idea of the value chain cost management.and in order to find the cost control problems in the current situation in K enterprise,We deeply analyzed the enterprise value chain. And then combing with modern cost management, we have carried on the comprehensive and effective cost control of the enterprise, to achieve the overall value of the business chain cost competitive advantage. Value chain is a dynamic series of enterprise value creation process,including basic activities of procurement, production, sales and after-sales service,as well as human resource management, technology development and other ancillary activities.It is a dynamic open chain.Now the competitiveness of enterprises is no longer a competitive of individual activities, but the total value of the enterprise value chain activities. So, based on value chain perspective, the paper analyzes the problems of cost control in current situation from three aspects, which are the industry value chain, the internal value chain and key project value chain. We have designed the mode of cost control of the three value: First, we carried out the strategic cost management in industry value chain in the elevator industry.Elevator manufacturers and their suppliers need to actively communicate to establish strategic partnerships.The elevator enterprises should set up the supplier’s information management system on a regular basis to analyze and evaluate suppliers,in order to control enterprise costs. Enterprises should implement customer satisfaction strategy on downstream customers,in order to improve customer value.Second, enterprises should implement quality cost management on the elevator industry internal value chain, mainly curried out quality control and cost analysis, including four areas: product design cost control,cost control, quality control and marketing costs of logistics cost control.Third,the elevator enterprises should implement the responsibility cost management on the key project of the value chain,and implement the responsibility cost management in maintenance and upgrading, in order to improve the level of goods and services and its market competitiveness.K elevator company is the market leader in the elevator industry in our country, so the analysis of the company’s operational management experience play an effective reference for other company.