Discussions On Establishment Of Full Budgetmanagement System By Hudong-Zhong Hua Shipbniding Group

During the 20 and more years since the reform and opening up policy has been implemented in our country, reforms of the traditional planning economy system has been conducted step by step. As a result, substantial changes have taken place on the management system and business mechanism in the state-owned enterprises and the market force has noticeably been reinforced as well. The state-owned large shipbuilding enterprises have been in the dominant position of the shipbuilding industry in our country, playing an important role. While endeavouring towards the objective of becoming a powerful shipbuilding nation in the world, our shipbuilding industry is facing not only the intensive competition from Japan and Korea, but also a series of risks such as market fluctuation, going-up price of raw and processed materials and variation of exchange rate, etc. Therefore the large state-owned shipbuilding enterprises of our country have to keep updating and creating their management concept with the purpose to promote our shipbuilding industry to develop in a sustainable, rapid, harmonic and sound manner.As a core of the management of enterprises, the financial management performs a comprehensive control on the whole process of the enterprise's production and business in form of value. The budgetary control is a financial management method prevailing in the world nowadays. The overall budgetary control will be a very realistic and effective means for enterprises to increase income and reduce expenditure, expand production and tap potential so as to improve the efficiency and competitiveness. 'Planning for the future, controlling the present and checking the past', what a high condensation for the function of budgetary control!Based on the theory of the overall budgetary control, combined with the characteristics of the management, product structure and production scale in the group, the establishment an overall budgetary control system in Hudong-Zhonghua Shipbuilding Group, a super large state-owned shipbuilding enterprise in China, will play a very important function in terms of improving the management quality of the shipbuilding enterprise, enhancing financial management and raising the economic...