Application Study Of Total Cost Management In Linyi Hengfeng Textile Technology Co.,Ltd.

With the acceleration of global economic integration,China's economic construction has entered a new normal of structural adjustment and upgrading.in addition,China's labor costs,energy costs,transportation costs,environmental governance costs increased year by year,etc.Various factors make China's textile production enterprises are facing increasing cost pressures,Enterprise profit space is getting smaller and smaller,Also makes some enterprises face the dilemma of loss.Furthermore.China's textile industry is also faced with the elimination of outdated equipment,textile fiber raw material quality and economic system and policy constraints.The entire textile industry must reduce costs,improve efficiency,transformation and upgrading,innovation and development.Therefore,the purpose of this paper is to study the textile company's cost management.This paper studies Linyi Hengfeng Textile technology co.,LTD cost management based on value chain by means of case analysis combined with field survey.First,sorting out the domestic and foreign literature,defining the concept of cost management and value chain,introducing the relevant theory;Secondly,Find out the problems existing in the cost management of this textile enterprises.Again,According to the analysis of enterprise horizontal and vertical value chain,to establish a total cost management system of Hengfeng textile company.Finally,putting forward safeguard measure of Total Cost Management Based on value chain.In the end coming to the conclusion:The total cost management base on value chain is affected by various factors.It needs all departments in enterprises to actively cooperate to enhance the level of cost management;through the comparison among the enterprises' cost management model can find the weak points.Implementing total cost management in Linyi Hengfeng Textile technology co.,LTD,looking for horizontal and vertical value chain value-added activities and the weak link,achieved the inter-departmental coordination and establish systematic integration of the cost management system from budget,procurement to the actual cost accounting and supervision and control.moreover,stimulate the staff vitality through cost inspection and rewards and punishment mechanism,improve staff awareness of cost savings,encourage employees to find new ways to reduce costs,cultivate the core competitiveness of the enterprise,to achieve from big to strong enterprise to lay a solid foundation.