DOI: https://doi.org/10.15587/2312-8372.2019.157646

Construction of a model of strategic management of costs at the machine-building enterprise

Lyba Shevtsiv, Yevgen Romaniv, Deniza Dolbneva

Abstract


The object of research is a system of strategic cost management at a machine-building enterprise. One of the most problematic places is building a model of strategic cost management, which is associated with modeling the processes of accounting and analytical support and the complexity of adapting cost management methods. Providing an integrated and systematic approach will help the company's management personnel to obtain a sufficient amount of information to manage both at the operational and strategic levels.

The analysis of the current state of engineering in Ukraine is conducted on the example of a comprehensive analysis of the structure and dynamics of costs of LLC VEEM-Metallavtoprom (Lviv, Ukraine). This will help to find the strengths and weaknesses of the enterprise regarding the cost formation strategy. By deciding at a strategic level (for example, changing technology), it is possible to immediately get rid of a large number of factors at the operational level (production, commercial cost object).

In the course of the study, modeling of accounting and analytical support processes for strategic cost management of the enterprise under study is applied based on the implementation of an integrated approach with the following components: strategic accounting, strategic analysis, information support. In particular, strategic accounting as an element of accounting and analytical support will provide information on the state of the external and internal environment of the company; financial and non-financial indicators to make informed decisions. The use of strategic analysis will ensure the influence of factors on the company's strategy, its behavior in the market, the possibility of competing and positioning, as well as strategic performance.

However, the introduction of the model at the machine-building enterprise under investigation is associated with insignificant financial, organizational costs, which will not always ensure its high efficiency in priory. Additional opportunities will be obtained by the investigated enterprise, using the advantages of strategic accounting, strategic analysis, and management approach:

  • improving the level of automation;
  • introduction of measures that will affect the improvement of the quality characteristics of products;
  • use of advanced methods for planning, accounting;
  • view the range of products;
  • improving the organization of production and labor.

Keywords


cost-forming factors; strategic cost management; strategic accounting; strategic analysis; Deming-Shewhart model

References


Shah, H., Malik, A., Malik, M. S. (2011). Strategic Management accounting – a messiah for management accounting? Australian Journal of Business and Management Research, 1 (4), 1–7.

Ramljak, B., Rogosic, A. (2012). Strategic Management Accounting Practices in Croatia. Available at: https://bib.irb.hr/datoteka/605419.SMA_in_Croatia.doc

TzOV «Kompaniia VEEM-Metalavtoprom»: zvity pro finansovi rezultaty za 2013–2017 rr. Available at: http://veem.biz/

Kumar, A., Nagpal, S. (2011). Strategic cost management – suggested framework for 21st Century. Journal of Business and Retail Management Research, 5 (2), 118–130.

Savic, B., Vasiljevic, Z., Djordjevic, D. (2014). Strategic cost management as instrument for improving competitiveness of agribusiness complex. Ekonomika Poljoprivrede, 61 (4), 1005–1020. doi: http://doi.org/10.5937/ekopolj1404005s

Collatto, D. C., Souza, M. A. de, Nascimento, A. P. do, Lacerda, D. P. (2016). Interactions, convergences and interrelationships between Lean Accounting and Strategic Cost Management: a study in the Lean Production context. Gestão & Produção, 23 (4), 815–827. Available at: http://dx.doi.org/10.1590/0104-530X1279-15

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Melo, M., Leone, R. (2015). Alignment between Competitive Strategies and Cost Management: a Study of Small Manufacturing Companies. Brazilian Business Review, 12 (5), 78–96. doi: http://doi.org/10.15728/bbr.2015.12.5.5

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Derzhavna sluzhba statystyky. Available at: http://www.ukrstat.gov.ua

Shank, J., Govindarajan, V. (2008). Strategic Cost Management: The New Tool for Competitive Advantage. Free Press, 272.

Milash, I. V., Krasnousov, A. V. (2015). Stratehichne upravlinnia vytratamy pidpryiemstv rozdribnoi torhivli. Kharkiv: KhDUKhT, 286.

Prodanchuk, M. A. Stratehichne upravlinnia vytratamy ahrarnykh pidpryiemstv. Available at: http://magazine.faaf.org.ua/strategichne-upravlinnya-vitratami-agrarnih-pidpriemstv.html

Suloeva, S. B., Gultceva, O. B. (2017). The system of cost management: conceptual provisions. Organizer of Production, 25 (3), 47–58. doi: http://doi.org/10.25065/1810-4894-2017-25-3-47-58

Kostetska, N. I., Khopchan, M. I. (2012). Stratehichne upravlinnia vytratamy yak zasib zabezpechennia konkurentospromozhnosti pidpryiemstva. Innovatsiina ekonomika: vseukrainskyi naukovo-vyrobnychyi zhurnal, 5 (31), 81–86.


GOST Style Citations


Shah H., Malik A., Malik M. S. Strategic Management accounting – a messiah for management accounting? // Australian Journal of Business and Management Research. 2011. Vol. 1, Issue 4. P. 1–7.

Ramljak B., Rogosic A. Strategic Management Accounting Practices in Croatia. 2012. URL: https://bib.irb.hr/datoteka/605419.SMA_in_Croatia.doc

TzOV «Kompaniia VEEM-Metalavtoprom»: zvity pro finansovi rezultaty za 2013–2017 rr. URL: http://veem.biz/

Kumar A., Nagpal S.Strategic cost management – suggested framework for 21st Century // Journal of Business and Retail Management Research. 2011. Vol. 5, Issue 2. P. 118–130.

Savic B., Vasiljevic Z., Djordjevic D. Strategic cost management as instrument for improving competitiveness of agribusiness complex // Ekonomika Poljoprivrede. 2014. Vol. 61, Issue 4. P. 1005–1020. doi: http://doi.org/10.5937/ekopolj1404005s 

Interactions, convergences and interrelationships between Lean Accounting and Strategic Cost Management: a study in the Lean Production context / Collatto D. C. et. al. // Gestão & Produção. 2016. Vol. 23, Issue 4. P. 815–827. URL: http://dx.doi.org/10.1590/0104-530X1279-15

Lal J. Strategic cost management. Girgaon: Himalaya Publishing House Pvt. Ltd., «Ramdoot», 2015. URL: http://www.himpub.com/documents/Chapter587.pdf

Chauhan M. Strategic cost management: a conceptual framework. URL: http://pggc46.ac.in/images/STRATEGIC%20COST%20MANAGEMENT.pdf

Melo M., Leone R. Alignment between Competitive Strategies and Cost Management: a Study of Small Manufacturing Companies // Brazilian Business Review. 2015. Vol. 12, Issue 5. P. 78–96. doi: http://doi.org/10.15728/bbr.2015.12.5.5 

Ganapaian C. Strategic cost management (SCM) – key for sustainable development in changing economic scenario – an analysis // BIMS International Journal of Social Science Research. 2016. Vol. 1, Issue 2. P. 141–147.

Velikaya E. G. Strategicheskoe upravlenie zatratami // Finansovyy zhurnal. 2012. Issue 3. P. 61–72.

Savchuk V. P. Strategicheskoe upravlenie izderzhkami. 2004. URL: http://www.management.com.ua/finance/fin073.html

Zenina E. V. Teoreticheskie i metodologicheskie osnovy strategicheskogo upravleniya zatratami: monograph. Bishkek: KRSU, 2014. 54 p.

Yashchenko O. I., Maidanska O. M. Stratehichnyi pidkhid v upravlinni vytratamy pidpryiemstva // Naukovyi visnyk. Natsionalnyi lisotekhnichnyi universytet Ukrainy. 2008. Issue 18.2. P. 145–149.

Derzhavna sluzhba statystyky. URL: http://www.ukrstat.gov.ua

Shank J., Govindarajan V. Strategic Cost Management: The New Tool for Competitive Advantage. Free Press, 2008. 272 p.

Milash I. V., Krasnousov A. V. Stratehichne upravlinnia vytratamy pidpryiemstv rozdribnoi torhivli: monograph. Kharkiv: KhDUKhT, 2015. 286 p.

Prodanchuk M. A. Stratehichne upravlinnia vytratamy ahrarnykh pidpryiemstv. URL: http://magazine.faaf.org.ua/strategichne-upravlinnya-vitratami-agrarnih-pidpriemstv.html

Suloeva S. B., Gultceva O. B. The system of cost management: conceptual provisions // Organizer of Production. 2017. Vol. 25, Issue 3. P. 47–58. doi: http://doi.org/10.25065/1810-4894-2017-25-3-47-58 

Kostetska N. I., Khopchan M. I. Stratehichne upravlinnia vytratamy yak zasib zabezpechennia konkurentospromozhnosti pidpryiemstva // Innovatsiina ekonomika: vseukrainskyi naukovo-vyrobnychyi zhurnal. 2012. Issue 5 (31). P. 81–86.







Copyright (c) 2019 Lyba Shevtsiv, Yevgen Romaniv, Deniza Dolbneva

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ISSN (print) 2664-9969, ISSN (on-line) 2706-5448