Study Of Strategic Cost Management Of Colliery Enterprise

The theory and methods of strategic cost management (SCM) were researched and analyzed by taking coal industry ( Enterprises focusing on coal products) for example.The strategic cost management (SCM) theory is the main focus in this paper. Based on the current project " Research into SCM in Coal Industry" , and according to the practical situations in coal industry, research and analysis of some sophisticated problems of SCM in coal industry have been conducted by means of meta-synthesis method from quality to quantity.The history and significance, implications, characteristics and research contents of SCM were introduced, and the shortcomings of cost management in coal industry were presented. Then the methodology of SCM in coal industry, including five parts, i.e., evaluation of enterprise competition, value chain analysis, cost drivings analysis, strategic positioning analysis, and evaluation of SCM outstanding achievements, was put forward and discussed in detail. Purpose and method of evaluation were presented, and multi-index linear integrated evaluation function was provided in Part 1. In Parts 2, 3 and 4, their concepts and types were introduced, and then cost information of enterprise competition was stated from many aspects by means of value chain analysis. Based on the cost information, strategies were established to eliminate cost disadvantages, and create cost advantages. SWOT variation method and enterprise life circle method were utilized to conduct positioning analyses of total strategy and competition strategy. Then the structural cost and executive cost in coal industry were analyzed, driving factors of cost were determined, and importance of cost management was mastered in the industry. Safety cost was brought forward and emphasized, which is one of innovations in the context. In Part 5, evaluation of outstanding achievements of SCM means self-examination and self-assessment of SCM work. The contents of SCM were extended by using evaluation of outstanding achievements, and two quantified evaluation methods for evaluation of SCM outstanding achievements were presented for the first time. The theory and methods were proof-tested by using case studies.In the end, the methodology of SCM in coal industry was summarized, shortcomings of the research were discussed, and the future of SCM applications was analyzed.