Research On Production Cost Control With LEAN Concept Of Enterprise U

As an advanced production system-LEAN Production has been widely used in Japan,Europe and United States and other developed countries.It is not only applicable to manufacturing,also for high-tech industry,IT,automobile and home appliances etc,it has been gradually extended to fields such as service,healthcare and finance.More and more enterprises are learning and practicing lean production system.Lean production is different from traditional production system.During the period of high economic growth,traditional manufacturers can increase production volume and reduce costs by mass production.Focusing on the participation of the lean production,everyone with lean thinking,continuous improvement,identify and eliminate waste during process of manufacturing,through improvements of business process optimization,on-site production efficiency,quality improvement,as well as to reduce costs,shorten the delivery time,improve customer satisfaction in result of maintaining the enterprise competitiveness.Lean cost management takes customer value as the orientation,takes the whole enterprise value stream as the core,eliminates waste in every part of the whole value chain,reduces waste and plant operations cost as the purposes of achieving comprehensive supply chain lean cost management.Enterprise U is a typical national high-tech enterprise in Shenzhen.It is a wholly-owned subsidiary of U group corporation,which was founded in 1990 and listed on NASDAQ in 1992.With more than 20 years of experience in lithium battery production,the products are widely used in the military,industrial,electronic systems,security,communications equipment,public utilities and a variety of portable electronic products.The main raw materials of company U’s products are imported materials.With the trade war between China and the United States and the continuous rise in the cost of domestic production factors,company U,as an American company,has no price competitive advantage due to the low cost of domestic competitors.In recent years,due to higher production costs,the market share of company U has been eroded by competitors,and the profit margin decreased significantly.It is in this paper that,on the basis of lean concept,company U pursues cost management with LEAN concept to reduce production cost,improve competitiveness and achieve sustainable development.In this paper,the research object,focusing on the U enterprise in order to reduce the cost of enterprise,referencing domestic and foreign experts and scholars on the study of the theory of the lean production and lean cost management,aligned with the practical situation of U company,from the perspective of whole enterprise current value stream map analysis of the current in company U lean cost management problems,and identify and summarize the current problems,put forward the corresponding improvement countermeasures for the corresponding problems.Based on lean concept,the cost control of enterprise U is carried out from the following four aspects: Labor cost control,labor cost reduction by implementing lean production plan,optimizing and improving production process,optimizing organizational structure,production line balance,reducing staff turnover,etc.Material cost control,making standard material consumption and necessary wastage based on product consumption demand,analyzing actual material receipt,consumption and wastage to find out the causes,and regularly checking and updating material consumption to reduce material cost by improving standard consumption and wastage;Inventory cost control,adopting the concept of just-in-time production and combining with the establishment of standard working hours for products to make reasonable production planning and scheduling,so as to eliminate the inventory waste caused by premature and excessive production,and implementing the VMI supplier inventory management method for materials with high added value and high demand to reduce inventory cost;Equipment cost control,achieve the best manmachine combination through standardized operation,reduce equipment idling,improve equipment utilization rate through Total Productive Maintenance(TPM),and reduce abnormal downtime of key equipment in the production process and its impact on production efficiency.Through the specific research and analysis of company U,this paper proposed a series of cost control schemes and implemented them effectively,which promoted the effective control and improvement of the production cost control of company U’s products,and improved the lean cost management system of company U.At the same time,this paper has certain reference significance for manufacturing enterprises in the implementation of lean on-site improvement,cost reduction,lean cost management and other aspects.