A Study Of Coal Mines’ Internal Control System Based On PDCA Cycle

The prosperous of coal and the absence of petroleum and natural gas is the cause ofthe important role that coal play in the energy structure will not change at a long time. Thecoal enterprises have made rapid development with our country’s economy growth in recentyears. At the same time, market demand exceeds supply situation obviously slow with thefasted increase of coal output. In addition, China’s coal imports continue to increase underthe influence of the international coal market downturn and falling prices. Coal marketcompetition is increasingly fierce. It is necessary for coal enterprises to increase economicbenefits and promote the competitiveness though changing extensive management modeand introducing scientific management method.As a management mode, internal control can effectively prevent risks and improveenterprise management level. It is an effective way for the coal enterprises to transformmanagement mode and realize the management innovation. Internal control is more andmore attention after a series of violations of enterprises and management failures happenedboth in china and abroad, such as Enron, WorldCom, China aviation oil (Singapore), SanLu etc. Many coal enterprises established their internal control system after our "basicnorms of internal control" and its supporting internal control guidelines issued，andachieved good results continuously. But from an overall perspective, their internal controlsystem is not perfect, comprehensive and in-depth yet. How to build the internal controlsystem that suited to coal enterprises still needs further research and exploration.This paper firstly finds that it is necessary to build internal control system of coal mineby analyzing the development status of coal enterprises. Then, it puts forward the idea thatusing the famous PDCA cycle method in internal control system construction and analyzesthe feasibility of this idea after studying related theory. Next, according to our “basic normsof internal control and its supporting internal control guidelines, the paper gives the scopeand contents, the general idea and the route of coal mine PDCA cycle internal controlsystem. Finally, the article used the idea in n practice with the Jizhong Energy ResourcesCo., Ltd. Dong Pang Mine as a case, and successfully built Dong Pang Mine three layers ofprogressive PDCA cycle internal control system. The research of this paper not only enrichthe theory of internal control in our country, but also provides a guidance value to theconstruction of internal control system of coal mine or other enterprises.