Research On Cost Management Of AD Construction Company Based On Value Chain

With the continuous acceleration of the development of global informatization,various industries are undergoing various degrees of change,including technological changes and management changes.How to improve the efficiency of enterprise cost management has become the focus of enterprises.The construction industry is a traditional industry in China.The cost ratio is relatively high.Enterprises with low-cost advantages are more likely to obtain long-term value-added.Traditional cost management attaches importance to the cost management effect of the construction stage,and value chain-based cost management is an expansion Cost control scope,effective analysis tools and strategic means to enhance corporate value.From the perspective of the value chain,managing the costs of construction companies can reallocate various resources of the enterprise,improve the connection between basic activities and supporting activities in the value chain from the inside and outside,and change the future cost management thinking of domestic construction companies.In this paper,through the research and study of the value chain concept and cost management method,the AD construction company is taken as the research object,the value chain is introduced,and the traditional cost management method of the construction enterprise is studied in depth using the literature research method and the case analysis method.First,on the basis of studying domestic and foreign scholars’ research on value chain and cost management related theories,the characteristics,content and advantages of value chain cost management of construction enterprises are analyzed.At the same time,through a field inspection of the internal management model of AD Construction Company,the company’s business characteristics,cost structure and current cost management methods were analyzed,and the company’s cost control effect was found to be poor.The necessity of introducing a value chain into the company’s cost management was proposed..Secondly,analyze the company’s construction project cost expenditure in detail,distinguish the company’s internal and external costs and account separately,and classify the value activities generated in the internal value chain,external vertical value chain,and competitor’s value chain as value-added activities and non-value-added activities.To find out the problems existing in the current cost management method.Finally,by analyzing the construction cost of the AD company’s F project,find out the cost drivers,calculate the overspending costs and cost savings of each part,propose appropriate management measures for the cost control points of the overspending part,and manage the upstream suppliers and downstream Costs between subcontractors and end customers.At the same time,when analyzing the value chain of competitors in the industry,find out the disadvantages of AD companies compared with competitors and improve them,improve the internal guarantee mechanism of the enterprise,adopt strategic alliances to cooperate with appropriate competitors,and seize timely market share.Through theoretical and practical research,this article shows that after introducing the value chain concept,the current cost management method of AD companies can help the company create new competitive advantages,lay the foundation for the company to formulate a long-term development strategy,and also provide a certain amount for other companies in the construction industry.