Study On Improvement Of The FGS(Suzhou) Company Cost Management System

Fiber Glass System (Suzhou) Co., Ltd was founded at XiangCheng Developing Economic District, Suzhou, China in 2003 and the register capital is 6 millions USD. Fiber Glass System (Suzhou) Co., Ltd. is a wholly American owned enterprise operating under the fiber Glass Systems division of National Oilwell Varco Inc(NOV Group) who is the leader in the design, Manufacturing, sales and service of fiberglass reinforced plastic (FRP) piping systems used for Marine, offshore and chemical field. Fiber Glass System (Suzhou) Co., Ltd is only invested capital in china, and all the management person is came from the old state invested company, so many management system is also came from our state invested company. Management is an important way to serve an enterprise's direct purpose-increasing its profit. At present, FGS(Suzhou) Company's cost management mode is based on out-of-date cost management theory, and cannot keep the pace of the Market Economy's demands for the large Marine, offshore and chemical field manufacturers. To realize the purpose of surviving, developing and getting profit, a modern enterprise must focus on Cost Management and carry out reform as soon as possible to improve its management efficiency. As a result, it is a practical topic to study the case of the cost management project in FGS(Suzhou) Company.This paper first analyzes the necessity of the study of FGS(Suzhou) Company's cost management case, from its financial situation, cost characteristics, and cost structure, human resource cost, material management, etc. to find the main problems existing in FGS(Suzhou). Then the paper discusses the corporation's main principles and methods in its cost management and puts forward a whole plan for FGS(Suzhou) Company's cost management from the views of improving the cost forecasting process, procurement purchase process optimization, optimization cost management pattern, cost calculating management, cost analysis, and special project cost control, etc. The end of paper suggest that the implement of FGS(Suzhou) Company's cost management process can be divided into three steps to get good performance.