Research On The Cost Management Of LZ Thermal Power Company

This article takes LZ thermal power company as the basis for case study. Via acollection of all kinds of company internal documents, it makes good use of related knowledge and quantative analysis tools. Firstly, it's explained clearly the most reliable approach to improve the profit margin for a power plant is to reduce operational cost. Secondly, the LZ thermal power company cost management status, driving forces and existing major problems are analyzed in great details in terms of six aspects: electric power management mechanism, correlative policies forces, market environments, management methods, idealogical learnings and management skills. Based on this, a complete solution is derived which is focused on solving major bottlenecks and important steps during the process of cost control and the solution has to be addressed in five aspects: controllable cost, the largest portion of the cost, key points,innovation during management, and motivation mechanisms. Finally, summerizing all the above findings, from two aspects on the production and the prosecution. ten discrete management proposals such as control fuel cost and optimize economical run. This artical could also servers as useful references for management of many other power plants.