Study On The Cost Control In Automobile Part Production Enterprise

China auto industry had opened to the world after being a part of WTO.Many famous vehicle manufactures and spare part suppliers have entered China.At the same time domestic enterprises and parts production enterprise also is in rise abruptly quickly.With the increase of market demands,the production of auto parts enterprises and sales volume grows.When domestic and foreign competition increased in number and strength increase,competition in this industry is especially fierce.In such an environment,the automobile part production enterprise to survive and develop,and eveai build their own competitiveness.Cost leadership has become the key to success.But the cost management in many automobile part production enterprises exists a lot of problems,further restricting the development of the company.SCHG company mainly engages in auto parts R&D and manufacturing.It is the largest domestic mechanical electric solar term door manufacturing enterprise which market share over the years ranked the first place in domestic industry.Due to changes in the environment and aggravation of the market competition,the company needs to improve cost management to improve the level of corporate profits,and to improve the competitiveness of companies,forming a strategic advantage.This paper will analyse SCHG company’s cost conrtrol problem based on theoretical research and case study.This paper will discuss the cost control theory,principles,objectives,and methods,and elaborate the necessity of cost control in Auto parts enterprises.Analyse SCHG company ’s industry and environment,current situation of cost management,and Use the theory of strategic cost management to analyse the company’s cost control problems and solve these problems.At present,the production cost of SCHG company remains high,and it is gradually rising trend.Company’s procurement,sales and other activities of the cost cannot be well controlled.The company did not analyze the environment.There is no clear strategic objectives in the company,and there is many problems in its internal value chain.Cost performance appraisal is not reasonable.These factors restricting SCHG company cost control work,and affect the survival and development of the company.This paper will review former researches,find the deficiency in study.Firstly,from the perspective of strategic cost management,it combines with the current SCHG company cost management system,analyse the company ’s strategic positioning,finds the company’s position,in the industry,and formulates the company’s corresponding competitive strategy.Secondly,this paper analyzes the value chains of the company including the company’s internal and external value chain.On the cost driver analysis,it finds out the cost and the company’s most influential factors.This paper will carry out the company’s strategic planning,cost prediction,design a performance evaluation index system to assess cost performance.The article analysed the cost control in whole auto parts manufacturing enterprise in our country combining with the case of SCHG.Finally,it provides suggestions for improving cost control in the auto parts manufacturing enterprises.And help these enterprises to improve methods of cost accounting,cost control and the performance evaluation system of cost control.Finally,it enables enterprises to achieve the strategic objectives,to improve the competitive ability of the enterprise and maintain the sustaina:ble development of the company.