The Research Of Lean Cost Management Of KMM Motor Company

Chinese economy is continuously growing with the process of globalization,in 2010,Chinese GDP had exceeded Japan to become the world’s second largest economy,and the main support of Chinese real economy is manufacturing industry.The central government has pointed out many times: the construction of economic system modernization,we must focus on the substantial economy development.The industry is the foundation of the substantial economy.Only solid manufacturing,advanced manufacturing can let consumers enjoy a better life.In recent years,Chinese overall real economy had started to decline,Chinese manufacturing industry is facing unprecedented challenges,and small and medium-sized manufacturing industry is facing a stage of reshuffle.The company business mainly depends on two aspects: one is differentiation strategy,the other is cost strategy.The differentiation strategy mainly includes two aspects: one is marketing positioning;the other is product technology.However,the company that can really implement the differentiation strategy are concentrated in high-tech company or medium and large company.If the small and medium-sized company wants to improve their competence,they must control the cost.That is cost leading strategy.If company wants to implement the "cost leading strategy",they must solve the problem of cost management.For manufacturing company,cost reduction is not the only way during the process of cost management;more and more company realized that customer willing to pay products with best quality and best price.They also pay more attention to evaluate the operation capability and service quality during their product selection instead of hunting for cheap price,the basic idea of lean cost management is provided suitable product for customer by mean time with proper lean cost controlling,recently lean management affect behavior of current majority management team,we already see that many companies considered the establishment of lean management system as their business operation strategic planning.But it becomes an essential requirement to build a successful lean cost management system.This paper takes KMM motor company as the research object,and under the guidance of traditional cost management theory and lean cost management theory,by using the application of literature analysis,comparative analysis and case analysis,studies the cost management methods of the of each management process along with its value stream.From the perspective of lean thinking,in-depth study of the actual situation of the company’s cost management,through the investigation and analysis of the company’s cost management problems,specific analysis of the root causes of the problems.Guided by the idea of lean cost management,based on the operation and management characteristics of KMM motor company,cooperate with the company’s lean production project,this paper puts forward the introduction of lean cost management model,it is including identify the main value stream,Lean design cost management,lean purchase cost management,lean production cost management,lean logistics cost management and lean cost accounting methods.Finally,sustainable development of Lean culture,Lean cost KPI system are success to implement the method of lean cost management.This article conclusion: lean cost management is oriented to the whole process of enterprise management,it need total employees’ involvement,a comprehensive analysis of the problems existing in the enterprise cost management,and constantly optimize the adjustment cost management methods,to find and eliminate waste,reduce non-value added work,reduce business operating costs,achieve the objectives of the lean enterprise cost management.By mean time it can provide certain reference significance for cost management of other motor manufacturing industries.