Research On The Performance Evaluation System Of Dongfeng DS Company Based On The Comprehensive Score Card Theory

2007 is another plentiful and substantial year in the automotive industry development history of china. The vehicle sales and production volumn expand by 22.02% and 21.84% from previous year, up to 8,882,500 units and 8,791,500 units. Presently, The vehicle sales and production volumn of china have ranked 3rd in the world. As the size and benefit of the automotive industry further expands , the vehicle parts industry developed rapidly else. The Dongfeng DS Company, a large-scale corporation as a subsidiary companye of DFM, developed rapidly promoting by the policy incentives of the government and parent company. For the recent years, the vehicle parts industry as a new force suddenly rose in manufacturing indusry,but the diversity of the output, the compression of labor as well as the difficult to confirm the index, constituted the bottleneck in the performance evaluation of the vehicle parts industry, which made a big obstacle for the management and strategic development of the enterprise. As a results, a large amount of experts and scholars made a lot of deep research on the the performance evaluation . This paper just opened out the study in this background. This paper will be introduced in four parts as follows.Firstly, compared with three accounting management tools of Activity Based Costing Management, Economic Value Added and Balanced Score Card, this paper analyzed their otherness and confluence. In terms of these complementarity, the paper analyzed how to integrate these three management tools and finally established a comprehensive enterprise performance evaluation management system named CSC which used the BSC as the basic frame and applied the EVA and BSC as the evaluation gist.In the related-theory summary part of chapter two, the paper pointed out that the enterprise performance evaluation is the working achievement which acquired from the enterprise management activities by economy entity using the limited resource in a certain time. In other words, the enterprise performance evaluation can design a corresponding index evaluating system according to the enterprise strategy and make out the impersonal, righteous, exact and comprehensive judgement by using specific evaluation method in terms of the certain evaluation standard. It's also the synthetical performance of enterprise's adaption to market , profit capability and the duration of competition advantage. The performance evaluation of enterprise is the core problem in the fields of capital market and the management accounting. Meantime, the universality of the performance evaluation objects also decides its far-reaching, abroad and practical meanings.As three most significant management tools emerging at the end of the 20th century, the balance score card (BSC), Activity based costing management (ABCM) and Economic Value Added (EVA) are the important theory gist in the paper too. BSC ,set up by Robert. S. Kaplan and David .P. Norton., could decompose the enterprise strategical target into various mutual balanceable performance evaluation index syste layer upon layer, and check their real status in different period. EVA was developed into a brand-new management evaluation system and salary prompting system by Stern Steward Company at the beginning of 1990s, which is an economy value index after adjusting the enterprise profit properly, viz. the net worth which is enterprise net profit after tax minus tatal capital cost. ABCM is a costing management based on the working activities.It is a management activity which is deepened and developed from the ABC (Activity Based Costing ) theory and realize the endurance improvement and cost ecomony under the control of operating cost.Secondly, from the aspect of the CSC (comprehensive score card) theory, the paper has investigated the Dongfeng DS company strategy and the former performance evaluation systemically, analyzed the enterprise present strategy by the SWOT tool and finally pointed out the problems in the original performance evaluation system and necessity to apply CSC . Then, the paper sets up an index system from four aspects of finance, customer, internal process, study and development based on the strategy and key successful factor, using the EVA index in the finance aspect, and selecting the index combine ABCM. Afterwards, this paper fixed on the weight of the index by using AHP linked with experts grading method, which strengths the scientific and authority of the new system..Thirdly, this paper carried on the CSC performance evaluation according to the historical date in recent three years and the industry financial dates related to the new performance evaluation system. Futhermore, It made an analysis in the way of portrait and landscape orientation to put forward the countermeasure to improve the manage performance. Finally, in order to validate the application of the new index system, the author organized a questionnaire about the CSC with the help of Management And Plan Dep. in DFDS company .The result shows that more than fifty percents of the staffs considered the CSC performance evaluation effctive. That is to say, more than half of staffs identified with the new pattern, and hold the positive attitude.Lastly, paper concluded that, the original performance evaluation system of Dongfeng DS Company existed problems containing the half-backed index system, the supporting to the target unconspicuous and unscientific to the design of the index weight; CSC is a rational choice in order to adapt to the mutative economy environment; it possessed the peasibility and realistic meaning for Dongfeng DS Company to implement the CSC performance evaluation system. Generally speaking, for introducing the method combined the theoretical analysis and the actual operation unifies, this paper applies the performance evaluation tool of CSC to Dongfeng DS Company in order to make the enterprise strategic target and staffs' work behavior synthesis organically. The purpose of this paper is not only to design a performance evaluation mode, but also to design an integrity management tool. It can provide a specific pattern and sample for Chinese enterprises to introduce the CSC into the enterprise administration.