Research On Cost Control Of XG Metal Manufacturing Company Based On Value Chain

In the last few years,under the effect of the global economic crisis,the development of China’s metal manufacturing industry has slowed down significantly.The market demand has also decreased,and the development of enterprises has been hindered and restricted.However,it is even more difficult for small and medium-sized metal manufacturing enterprises to survive in such a severe competitive environment.Compared with large enterprises,small and medium-sized enterprises have lower risk resistance,lower cost control awareness,and higher direct costs.Therefore,in order to meet the challenges,small and medium-sized metal manufacturing enterprises need to establish a more comprehensive cost control strategy,The cost control method based on the value chain is beneficial to cutting down the direct and indirect costs of companies,and can promote enterprises to carry out the differentiation tactic of goods and services,thereby,enter the market with low cost tactics,obtain competitive advantages,and adapt to the changing circumstances.Within the above background,the thesis selects XG Metal Manufacturing Company as the research object,and carries out in-depth field research to identify the current status and problems of the company’s cost control,and put forward some suggestions.Firstly,the thesis introduces the the basic situation and cost control situation of the company.The existing problems in cost control and reasons are introduced.Secondly,the thesis analyzes the internal value chain and external value chain of the company.The thesis applies the the activity-based costing method and activity-based costing value coefficient method in the internal value chain to find out the value-added and non-value-added activities.In terms of the vertical value chain,the thesis mainly analyzes it from the viewpoint of suppliers and clients.It basically analyzes the enterprise’s lateral value chain from the viewpoint of opponents.Lastly,the optimizing suggestions are proposed from the perspectives of internal value chain warehousing,material procurement,production and sales.This thesis finds that XG company should put the company in the whole value chain to analyze their own cost control,that is,taking the company’s internal situation,suppliers,customers and competitors into consideration.The cost control method based on value chain can enable the company to more accurately judge the value-added and non-value-added activities of costs,and help the company to implement timely response strategies when internal and external factors change,and realize the company’s long-term development vision.The research findings of this thesis can also provide certain references for the cost control of same small and medium-sized metal manufacturing enterprises.