Research On The Cost Control Of Maintenance Center Of Shenhua Zhungeer Energy Company,LTD

Under the fierce competition of market economy, cost became the major elementof the profit of companies, and affects the development of the company as well. Insuch circumstance, the winner will always be the one that produce more coal withlower cost. The coal mining companies can only survive and develop by changingthe way of economic growth through cost control. The maintenance cost is the mainpart of mining companied,especially to Maintenance Center, which undertakesmaintenance of almost all the machines in both Heidaigou and Haerwusu open cutmines, such as shovels, trucks,conveyors and so on. Therefore, it is an importantsubject to Maintenance Center that how to control the maintenance cost effectively.Meanwhile, an effective cost control such as security cost control, and spare partsstorage cost control, is an important way to maximize the profit of both minesmentioned above.The thesis of this paper is the cost control of Shenhua Zhungeer EnergyMaintenance Center. A brief introduction of Shenhua Zhungeer Energy CompanyLimited and of structure of Maintenance Center is given in this paper as well.Byintrodusing the knowledge of cost control and cost control theory, the understandingof cost management will be thus deepened. According to a detailed analysis of thepresent cost control of the company, problems were pointed out in aspects such assafety cost, maintenance cost, ordering and inventory cost, supervising andstimulating cost. In Maintenance Center, improvement need to be made in decreasingsafety accident to lower cost, To solve these problems, different ways were found out.First of all, safety cost should be used to improve both software and hardware facilities,which will help to avoid site accident. Secondly, some aspects needs to bestrengthened such as the accuracy of maintenance plan, the modification of producingstructure, establishment of maintanance quality monitor system and the cost controlof both administrative offices and workshops. Thirdly, several ways of improvingcost management were introduced in this paper which includes aspects like safety,maintenance, ordering and inventory, and stimulating employees who are full ofpotential. These4measures were used to improve the cost management and reducethe cost of Maintenance Center and finally gain a win-win outcome both inmanagement and profit.