Cost Management Optimization Strategy Of Ningxia TD Company Based On Lean Thinking

The manufacturing industry is the main body of the real economy and the key engine to promote the long-term and stable economic growth.With the continuous release of the dividend from the supply side structural reform,the manufacturing sector has significantly reduced capacity,leverage,cost and efficiency,eased the contradiction between supply and demand in the industry,and improved its business performance,laying a good foundation for high-quality development of the manufacturing industry.In the process of China’s post industrialization,more and more Chinese manufacturing enterprises are widely using "lean thinking" in the whole process of production and operation,and lean cost management related to lean thinking is also increasingly valued by enterprises.As an important part of the equipment industry,the coal machinery equipment industry experienced a low period from 2013 to 2017.After that,the growth rate of fixed asset investment in the industry became positive in 2018,and the trend of upgrading demand increased.However,due to the downturn of the coal industry in recent years,the coal machinery equipment failed to be updated in a timely manner after entering the replacement cycle from 2013 to 2017,and most of them still rely on maintenance to maintain the use of coal machinery products.With the recovery of coal prices in recent two years,the profitability of the coal industry has improved,and the investment in equipment has increased.The pent up demand for coal machinery equipment renewal has become a trend,and the coal machinery equipment will continue to grow slowly in the next few years.This paper takes Ningxia TD Company as the research case,analyzes the current situation of its cost management,and draws a conclusion that although Ningxia TD Company has implemented lean management of warehouse management information system and material visual management,there are still problems in the industrial value chain,such as weak lean awareness of employees,separation of industry and finance,large purchase price negotiation costs,and inaccurate cost allocation.In view of the cost management problems of Ningxia TD Company,this paper believes that Ningxia TD Company should adhere to the five basic principles of lean thinking,define the key activity drivers of each link,form a "cost accounting unit" classified by order products,and use the process standard cost method to refine the cost accounting indicators,so that the company’s cost management focus is highlighted.In order to reflect the effect of implementing the specific program of lean cost management in the text,this paper selects Ningxia TD Company,which has obvious lean effect,to carry out the specific program of production cost accounting for structural parts,and puts forward relevant cost optimization suggestions,and puts forward the safeguard measures for implementing lean cost management from five aspects: organization,system,information technology,talent team and green ecological industrial chain.The company can optimize the cost management problem from the root,and the cost management of each link will also be improved by a breakthrough.