Research On GDI Business Cost Control Of FS Company Based On Value Chain Analysis

As the world’s largest automobile market,China has experienced more than ten years of rapid development and entered a period of slow growth since the second half of 2017.The entire automobile industry is in a very difficult period,and various market uncertainties are coming one after another.In order to gain more market share,each automobile enterprise constantly adopts innovation,price reduction and other means to attract consumers,the market competition is extremely fierce.As the upstream supplier,the auto parts enterprises can imagine the cruel degree of competition.Typically,OEMs cut prices to component suppliers by 3 to 5 percent a year.The general annual price reduction from customers and the competition for the interests of competitors,as well as the adverse factors of the entire automobile market environment,these external market competition pressure,is determined by the market environment,it is difficult for enterprises to control.However,the enterprise is faced with the continuous increase of various costs,and the profit margin of the enterprise is continuously compressed.The previous cost control measures have been unable to meet the needs of market competition,and the enterprise is facing a very difficult situation.In this case,cost control is the most critical factor in order to maintain the profit of the enterprise.Based on the study and research of the value chain cost control theory related literature,this paper sorts out the research status at home and abroad,establishes the research content and research method of this paper,thus providing a solid theoretical foundation for enterprises to design a scientific and effective value chain cost control scheme.Next,I will introduce the development history,development status and cost control of FS Company.Taking the GDI(Gasoline Direct Injection)business of FS Company as an example,I will introduce the cost control status of GDI business.Methods such as case analysis,comparative analysis and investigation analysis were adopted to analyze the cost control problems existing in each link,which were mainly reflected in the deep-rooted traditional cost control concept,unclear target cost setting and lack of coordination mechanism of each link of the value chain,which resulted in the high GDI business cost.Therefore,FS Company must use scientific and effective cost control scheme to reduce the enterprise cost.Then,using the theory of value chain analysis,it analyzes the cost control situation of each link of the value chain in detail from two aspects of main activities and basic activities,as well as the root causes of the problems.Then,according to the principles of economy,long-term effectiveness and comprehensiveness,the paper proposes the design of enterprise cost control scheme based on value chain analysis.In the link of product research and development,it puts forward fine work plans,such as improving bidding organization,reasonably determining bidding quotation,refining target cost,adopting step-by-step investment,strengthening team building and performance appraisal,etc.In the link of material procurement,the author puts forward some schemes to reduce the cost of raw materials,such as simplifying design to prevent the excess quality,looking to the future to achieve win-win cooperation,introducing competition mechanism to implement dual-track supply,and adopting centralized procurement strategy.In the process of production and manufacturing,take measures to optimize the process,improve the level of automation,reduce all kinds of waste,enhance the enthusiasm of employees to participate in the measures to reduce production costs;Proposed solutions to reduce the generation of stagnant materials by controlling engineering changes,product EOP and production process quality problems in the warehouse and logistics links.At last,the author makes the guarantee measures suitable for FS company’s value chain cost control program design.First,the author establishes the value chain cost control organization to strengthen the awareness of all employees’ participation.Second,the use of data,information technology to serve the value chain cost control;Third,establish the evaluation and incentive mechanism of value chain cost control;Fourth,the establishment of the value chain cost control enterprise culture.Through these safeguard measures,to ensure that the value chain cost control scheme can be implemented in FS company for a long time and effectively,so as to continuously improve the enterprise cost control ability.This paper creatively proposes that the merits and demerits of product research and development affect the cost of the whole value chain,which should be paid more attention to.In view of the problem of high raw material cost in GDI business of FS Company,this paper puts forward some cost control schemes with suppliers, such as based on long-term,win-win cooperation and dual-track supply.Meanwhile,it emphasizes that all links of the value chain should cooperate and support each other.These measures aim to help FS Company to achieve effective cost control and sustainable development of the company,improve the comprehensive strength of the enterprise,and provide scientific decision-making and reference for FS Company and similar enterprises to build core competitiveness.