Lean Cost Management
LCM(Lean Cost Management), an enterprise has the superiority or inferiority of the significance of the extent to which ultimately depends on the enterprise make an impact on relative Cost and income, low Cost become measure whether the enterprise has the competitive advantage of one of the two important criteria. Strengthen the cost management more effectively and reduce the cost, in the enterprise management strategy is in very important core status, it fundamentally determines the strength of the enterprise competitiveness. Modern economy development gives new meaning to cost management, cost management goals by the profit maximization is no longer a direct reason of short-term decision, but more breadth and depth positioning in the strategic level. Look from the breadth, has from the enterprise internal cost management, development to the supply chain cost management; Look from the depth, has from the traditional cost management, development to the lean cost management.
The generation of lean cost management
Modern enterprise in the face of rapidly changing market environment, requires both survival and more requirements to long-term growth and development. Therefore, cost management goals must be positioned in customer satisfaction, on the basis of based on creating value for customers MuBiaoGuan, has far beyond the traditional profits or assets value as the only yardstick of target gauge, it serves to establish the enterprise competitive advantage, form long-term effective operation ability. Modern enterprise competition, competition is not only a product or service, has extended to the competition among the supply chain. The competition between the enterprises, in essence is the competition between enterprises in supply chain performance. Enterprise concerned parties in the supply chain such as suppliers, factories, distributors, customers and so on each link of reasonable arrangement and effective utilization of resources, the supply chain costs below that of other competing supply chains, the supply chain has stronger competition ability, at the cost of each node enterprise on the supply chain as supply chain optimization and cost reduction, the competitiveness of the enterprises will be strengthened.
Lean cost management thought essence
The essence of lean cost management thinking is to pursue the minimum cost of supply chain. Eliminate constantly in every link of the supply chain for customers value-added homework, eliminate waste, to reduce supply chain costs, to enhance the efficiency of the supply chain, the maximum to meet customer diversification of specialization demand, make the enterprise to enhance competitiveness.
The lean cost management
Lean cost management based on customer value, value orientation, the integration of lean procurement, lean design, lean manufacturing, logistics and service technology, the combination of lean cost management thoughts and management thoughts, formed a new concept of cost management, lean cost management. It from the procurement, design, production and service all-round enterprise supply chain cost control, to achieve the optimal supply chain cost, thus make the enterprise gain the strong competitive advantage.
The lean cost management method
Lean cost management thought is very rich, many management methods, to form the mutual connection, interaction of methods. If every thought in isolation, each kind of method, can accurately grasp the essence of lean cost management. Lean cost management of each management thoughts, each management methods are not isolated, but there is a link between each other, a way to support an alternative method, method and ensure the realization of ideas, only the lean supply chain management thought and method of organically combined, form a complete lean cost management system, to exert the function of each method, in order to achieve the ultimate goal of the system, the quality is good, cost is low, variety is more, time is fast. Pursue lean cost management, increasing the competitiveness of the enterprise, it is the goal of the highest level of system.
The aim of the lean production
The aim of the lean production is the whole supply chain in enterprise "to eliminate all waste"; Homework cost management to homework motivation as the breakthrough point, as the cornerstone of the lean cost management; Agile manufacturing goal is to "speed" and "satisfaction", in order to achieve the comprehensive competition ability; ERP system implementation throughout the supply chain the integrity, accuracy and real-time performance of information system, combing the business operation process at the same time. Lean cost management in supply chain cost management as a whole has the connection link, to ERP information gathered all parties of the supply chain, to achieve the lean cost management goals.
The content of the lean cost management
Because lean cost management main object for all aspects of the supply chain cost, according to the division of supply chain cost, lean cost management should specifically include the following content:
1. Lean procurement cost management
Foreign scholars research thinks, procurement costs accounted for about 40% of the sales revenue 60%, procurement cost occupies large proportion in enterprise supply chain cost, reduce the purchasing cost, become one of the key points to reduce supply chain costs.
Lean procurement cost management is to purchase as the breakthrough point, through standardized enterprise procurement operations, scientific decision-making and effective implementation of control, based on quality, price, technology and services, as needed, according to need the number of procurement of materials, put an end to purchase the high price and all the waste.
Lean purchasing cost management based on lean procurement, lean procurement requirements, establish and improve the corporate purchasing system, make the purchasing work standardization, institutionalization, and transparent decision-making mechanism, implement necessary bidding procurement, making public the hidden information, prevent black-box operation, on the premise of guarantee quality, make the purchase price to a minimum; With the principles of fairness, openness, to select good supplier, with the method of directional procurement, to each of the required materials, according to quality, technology, service and price competitiveness, to select the suppliers, and with the establishment of long-term, mutually beneficial strategic partnership, achieve stable supply channel and low cost; By working with suppliers to sign when needed to provide materials need the quantity, variety of agreements, for timely procurement, shorten lead time, reduce material inventory. Lean procurement to purchase the cost of every link, every process to achieve the goal of the lean control, lean cost management ideas get fully embody.
2. Lean design cost management
The lean cost management should focus on the product development phase, and as it is the key of enterprise competition success or failure. Foreign data show that on the cost cause, 80% of the products is made in the product design phase, therefore, cost planning work runs through the entire product development process, in general should follow the following procedures:
(1) to determine the new product development tasks at the same time cost of new product development. Target cost is according to the market forecast sales price, the enterprise long-term plan target profit for subtraction formula was used to determine;
(2) the target cost and carrying out according to the product structure to all total cost of the products and parts;
(3) for each stage of product development target cost actually reached the level of prediction, and comparison analysis;
(4) according to the problems found in the comparative analysis, through the value engineering and value analysis method, research and adopt measures to reduce costs, ensure do not break through the target cost.
New product target cost in the design plan descriptions of the products, as well as main performance indicators, quality indicators, has rigid instruction effect to guide product development work. When developing new products can not meet the target cost and can't improve, it would be like a lock to lock the developed new products. Because it is directly related to the fate of a product to market. Work to prepare for the new product target cost control, product development personnel's service quality is important, designers should not only proficient in product design and development technology, and to master the necessary cost business knowledge; And cost control personnel should be to know both technical and economic analysis, and understand the product design and manufacture of the compound talents.
3. The lean cost management
Cost improvement was conducted in the field of manufacturing cost reduction activity, is also achieved through eliminate manufacturing all kinds of waste in the process of cost reduction activities, improvement of lean production cost has the following several ways:
(1) improving manufacturing technology to reduce costs. Products there are two types of technology: one is production technology, also known as the inherent technology; Another manufacturing technology is able to skillfully master the use of existing equipment, personnel, technology, materials and parts, and call management techniques. Lean cost management methods are able to transcend the traditional cost management mode, to a large extent depends on the successful use of management techniques;
(2) to conduct value analysis and value engineering, combining technical and economic considerations, on the premise of to ensure that the necessary function, obtained the lowest cost;
(3) rely on lean production, to eliminate all waste, realizing lean production cost management. The success of the lean production mode implementation requires all employees actively support. Team activities and all the staff consciously, characteristic of the lean production method is very important. Lean production is a revolutionary change, it not only requires production technology, production management modernization, automation and ask employees to modernization, develop team spirit to change consciously requires all employees, not the staff consciously, lean production is not possible. On the quality of staff in any of the following requirements: new ideas, to set up the lean production method adapt to the market concept, collective production concept, lean thinking and master consciousness, can consciously to independent management; Staff mastering many skills while specializing in business technology, requirement, one can transfer operation, and has the ability to participate in the management and technical work; Good teamwork, ask employees to play a team spirit, relying on collective wisdom to solve problems in production; The lean spirit is strong, asked staff to lean thinking into action, to eliminate all invalid labor and waste, continuous improvement and continuous improvement.
(4) the homework cost management. Homework cost management is a method based on operation cost management, it put the management focus on the job, and to enhance customer value as the goal. Homework cost management is in the late 1980 s to make the enterprise obtain renewable management methods. Homework cost management mode, through the operation process of the consumption of resources, products, process of work and resource consumption of cost drivers analysis, discriminant work efficiency and product cost of resource, identify effective operation and invalid operation, value-added and non value-added operations, eliminating invalid or non-value added work, make the cost control from product level to level job, in a sense reflects the real lean cost management thought.
4. Lean logistics cost management
Logistics cost occupies a high proportion in the enterprise supply chain costs, more prominent in the manufacturing or retailing. Logistics costs include transportation cost, inventory cost, storage cost and management fees, etc. In guarantee under the condition of customer value demand, the pursuit of logistics cost minimum, this is the basic goal of the lean logistics cost management.
Lean logistics cost management can be implemented through the lean logistics. Lean logistics requirements to customer demand as the center, create value from the customer's position to determine what, what does not create value; For sourcing in the supply chain, product design, manufacturing and distribution and so on each link carries on the analysis, find out cannot provide value-added waste; According to the uninterrupted, not detours, do not go back, do not wait and do not create value stream out to the principles of waste action plan. Create only driven by customer value in a timely manner, once found in a timely manner to eliminate wasteful link, striving for perfection.
Lean logistics cost management in logistics, realize the logistics on time, accurate, rapid, efficient, low consumption, at the same time to achieve the lean logistics cost management.
5. Lean cost management service
Lean service cost refers to the minimum under the condition of a certain value to meet customers demand service costs. Service cost is the enterprise spending, through services to increase customer value, under the condition of the same price, to attract more customers. Service cost is proportional to the consumers to buy, business spending of service cost is larger, the more you will provide customers with a variety of services, convenience and satisfaction degree of customers. In order to enhance competitiveness, the modern enterprise is more and more emphasis on customer service, service costs has become an important part of enterprise supply chain cost.
Although the increased cost of services, increase customer value, improve customer satisfaction, promote the product sales, but it doesn't mean that the bigger the better. The total cost of the services by the increased cost of enterprise increase, high service, beyond the customer expectations satisfaction level, caused the waste of resources, is not cost effective principle. Lean cost management is to get the service cost control on the basis of customer value demand, guarantee the customer satisfaction of the minimum value. Lean service cost management ideas embodied in satisfy customer needs, the waste and not cause any service costs.
Lean cost management is the supply chain in enterprises, on the basis of cost analysis, in order to increase customer value as the guidance, realize the whole cost minimum cost of supply chain management new ideas, it breaks through the traditional profit oriented cost management model, pioneered the new thinking space for cost management
Lean production is the world recognized produce the highest quality products at the lowest cost manufacturing enterprise management mode, through the implementation of lean management, enterprise can obtain:
Production capacity increased by 20% ~ 25%
Bad product decreased by 40% ~ 50%
Inventory decreased by 50% ~ 70%
Shorten the manufacturing cycle by 50% ~ 70%
The production site to save 30% ~ 40%
Profit is the lifeline of enterprise, in external demand has decreased, the increasingly fierce competition in the market situation, the high cost has become the enterprise profit killer. Benefits is to cost, from loss to profit is the enterprise of the consensus. So, how to control the enterprise's operating costs? [3-5] how reasonable "pull" from the cost out of profits? How to further improve enterprise benefit? Wang Wensheng teacher long-term research and participate in the world manufacturing benchmark companies such as Toyota and samsung's management practice, combined with the latest ideas of lean management and local culture, for China's manufacturing industry points out that the winning long win way of effective cost management.
First, changing the concept of cost
Second, scientific cost management cycle to operate at a high speed
Three, the beat is the benchmark team leader is the core
4, equipment, reasonable matching the key management
Fifth, different practices to produce different cost efficiency
Six, lean quality comes from the value stream management
Seven, the cost to maintain is home to return to capital turnover
Eight, the management efficiency of the waste is the biggest obstacle
Nine, cost to improve humanity caught the heart
Ten overall control, cost planning
Analysis factors of lean cost management
1 the cost planning
Cost planning refers to the product development to reduce costs in the process of activity, also known as the new product target cost control. The lean production is to control the cost first, focus on the product development phase, and regarded it as the enterprise competition is the key to determine success or failure, because in the product development design phase determines the production cost by 80%. In the structure of cost, development cost accounts for only 5% of the cost of the products; On the effect of cost control, the development stage (70%), other phase accounts for only 30%. Because traditional cost management to focus on the product manufacturing process of all kinds of consumption and cost control, to the new product target cost almost no takers. Three results from multiple levels of enterprise internal organization and division of labor fine design department design no cost, and designers tend to focus on product performance indicators, don't care how much cost, the price is high and low, think this is the plan, finance and sales department, so that product design improvements soon after the production, to make the enterprise in order to ensure product performance and economical efficiency to make a second production preparation, not only brought difficulties to organize production, can also create new waste to enterprises. Therefore, lean cost management promotes the use of good cost of 5% development cost, control 80% of the cost, and ensure that the product design of economic rationality and sophistication.
2 cost reduction suppression
Enterprise cost reduction is the enterprise use suppression plan or budget and effective treatment methods, eliminate waste, explore potential, increase production capacity, improve the work efficiency, replace the ineffective spending with effective spending review and evaluation, to achieve the purpose of improving production efficiency, reduce production costs of a cost management method. Enterprise cost reduction suppression of the purpose is to reduce the loss, eliminate waste, using constructive method, within the specified range continuously improve cost expense standards to reduce the cost. Enterprise cost reduction across the range of suppression of various planning, operations management, service management and so on all aspects of the work at every level, provide according to enterprise's profit for a long time. Lean cost management at the long-term cost reduction as the goal, with the fusion of technology, human resources and management strategy, provide enterprises with a long way to cut costs.
3 cost improvement
Lean cost management of the traditional cost accounting in the management plan, control, and analysis of the four process improvement, cost is lower than the actual level of activity is called a cost improvement. Cost improvement through eliminate manufacturing process of all kinds of waste to reduce cost. There are all kinds of waste in production. Can be divided into several levels, level 1 waste refers to the factors of production, there is a surplus if too many people, equipment, and inventories, it produces too much of the wage, depreciation and interest payments; Secondary waste, it is to point to make too much or too much ahead of time (do not advocate lean production ultra lean to complete the task, and emphasize timely appropriate); Level 3 waste is the products too much; Level 4 waste refers to the handling, excess surplus warehouse management, redundant quality maintenance, etc. Look from this level, each level is more comprehensive more important than the next level. Control of the secondary to produce too much or too early, we can reduce waste of level 3 and 4.
