On The Construction Of Coal Enterprises KPI System With Cost Control As The Core

In recent years, domestic coal enterprises are developing flourishing and also showinga trend of structural mergers and consolidation adjustments. Under the guidance of nationalmacro-control policies, the economic is developing sustained and rapidly. It also promotesthe development of coal enterprises to a high level. However, the development trend of coalenterprises is grim increasingly due to the impact of national industrial policy, internalmarket system, operational mechanism, the management system and other factors for a longtime. Production costs in coal enterprises increased year by year. It makes a marked declinein economic, which greatly restricted the stable development of coal enterprises. Coalenterprises need to find different cost control ways from the past to develop healthily,sustainable and stable. In this way, coal enterprises can improve the economic efficiently.KPI (key performance indicators) is an important tool of performance appraisal. This paperintends to build KPI system to assess the value and contribution of employees in theprocess of achieving business goals. It can achieve the cost control objectives ultimatelythrough using the KPI system.KPI (Key Performance Indicator) is more and more adopted by enterprises in theimplementation of performance appraisal. KPI system has many characteristics. Forexample: it plays a key role in areas such as position, department and methods forachieving business goals. It seizes the focus and the key especially. It takes business goalsas the core. It decomposes the target, makes the target quantified so that the target willnever deviate from all of business objectives. It can be a good measure of the contributionabout departments, positions, employees in the enterprise and play a good role in guidingbehavior.Enterprise KPI is an input or output processes to the target information within theorganization’s assessment. It is an actionable tool which breaks corporate goals down intorealistic goals. KPI is the basis of the performance management system. It makes employeebehavior and corporate goal consistent, and will not appear bias, which will effectivelyensure the realization of the company’s goals.The paper bases on KPI system. The author reads a wide range of theories about KPIand existing cost control status of coal enterprises. The author intends to built a suitableframework about KPI system for coal enterprises initially though using the KPIperformance appraisal tools which bases on the characteristics of coal enterprises. In this way, the corporate can increase profits through cost control in the period of slow growth incoal demand. And KPI system will be applied in the case of an enterprise-Jizhong sharesGequan mine, and achieve cost control purposes ultimately through decompensate thegoals.