Research On Value Stream Cost Management Under Lean Production For Falida Corporation

With the global economics' deep integration and increasingly fierce market competition,plus the rising cost of raw material and labor,which have resulted in certain impacts like that the profit left for an enterprise has gradually narrowed,but the speed of product upgrade has been accelerated and personalized products are expected by consumers within shorter lead time.Facing the changes from external market environment,Falida has introduced the lean production and conducted reformation to the company,so as to obtain sustainable competitive advantages.Following the further implementation of lean reformation,the company expects to achieve the goal of "Zero Inventory" and change to pull production mode.Also,if to solve the serial problems such as inaccurate and untimely information for cost accounting,high inventory,shortterm management behavior,etc.,it is critical and essential to take place the innovation of enterprise management mode and the improvement of financial management level.Basing on the external environmental pressure,the customized demand and the need of internal management for the company,this thesis proposes the Value Stream Cost Management to allow Falida to better execute the low-cost strategy and enhance the core competitiveness.Upon full understanding and analysis to the management problems,this paper has come to conclusion that the current product-based cost management mode does not match the lean production,basing on the background of lean production and the current situation of cost management for Falida.The main causes of such problem are as below: the control logic of standard cost itself,the distortion of behavior due to performance evaluation system,and the noncooperation among departments under existing organizational structure.From the perspective of management,it looks more likely a lacking of service awareness for "Customer First".On the basis of cause analysis,the Value Stream Cost Management is proposed.For the stage of product design and development,it is supposed to decompose the target cost by QFD tool,along with VE for project improvement,so as to add value to the customer service.It is good for the production to identify and eliminate the Muda in the value stream by using the Value Stream Mapping,and also control the cost in the procurement and sales stage.Furthermore,to improve and optimize the management in Cost Planning,Cost Accounting,Cost Analysis and Cost Assessment,will improve the company's level of cost management and support the lean production in a better way.Finally,it puts forward four specific safeguard measures,including the construction of core value "Customer First",the organization structure of value stream,the building of talent team and job position,and the information management of value stream,all of which are to ensure the smooth implementation of Value Stream Cost Management in Falida.Through the case study of practice in Falida,the thesis shows that Value Stream Cost Management can meet the needs of lean production and promote the level of cost management and the economic benefits with continuous improvement for the company,which leads to healthy and sustainable development as great support.At the same time,it is expected to generate some inspiration and reference ideas for those electronic manufacturing enterprises who plan to conduct the lean improvement.