Research On Cost Control Of Company A Based On Benchmarking Management

With the rapid development of oil and gas pipeline business in China,an oil and gas pipeline network covering the whole country,running through the north and south,and connecting overseas has been formed.Under this circumstance,natural gas and oil pipeline transportation enterprises have been established continuously,and the competition among enterprises has been increasingly intensified.In addition,under the market conditions,the price and capacity of natural gas pipeline transportation in China are completely determined by the market.On October 2016,the national development and reform commission carried out the price supervision of natural gas pipeline.The price of natural gas pipeline transportation is further limited,and the profit margin of oil and natural gas pipeline transportation enterprises is completely determined by the cost of pipeline transportation.Thus it can be seen that cost control is of great importance to pipeline transport enterprises.Although company A has taken a series of measures to strengthen cost control,they have achieved little effect.Therefore,it is necessary to further exploit the potential of cost reduction and strengthen cost control.Based on cost control theories and benchmarking management theories,this paper conducts case study on the cost control of company A through literature reading,case study,field research and other methods.Firstly,this paper introduces the basic situation and cost control status of company A,and carries out cost control level analysis through gray correlation analysis to judge the cost control level of company A in the industry.Secondly,through PEST analysis and budget difference analysis,it points out the problems in the cost benchmarking management and cost control of company A,such as the imperfect organizational structure of cost benchmarking management,the unformed benchmarking system,the unreasonable benchmark value setting,and the failure to combine the benchmarking results with the cost control,etc.Finally,aiming at theexisting problems of company A,the cost control optimization system based on benchmarking management was proposed in combination with relevant theories,including improving the cost benchmarking management organizational structure,establishing the cost benchmarking system,setting the benchmark value scientifically,revising the budget quota and strengthening the dynamic control and other measures.The guarantee measures of the optimized system are put forward,including strengthening the management consciousness of benchmarking,strengthening the system guarantee,establishing the cost benchmarking database and establishing the performance incentive mechanism.It is hoped that this paper can help in strengthening of the cost control of company A,and can also provide reference for the oil and natural gas pipeline industry and brother enterprises.