Cost Management Research On Power Trans Formation Project In Dashui Wind Farm

In the context of market economy, how to strengthen management, improveindustrial structure, cut down the cost, increase efficiency and win an invincibleposition in market competition is the objective and research subject that powerenterprises have been pursuing. In recent years, new energy industry has developedat a quite speed, the mainstream of which, wind power generation project ischaracterized by large initial investment, short construction period and cumbersomeprocess, etc., especially substation project has the greatest capital investment and themost tedious process. Currently, most enterprises are still in the primary andplanning management stages, their cost control systems are imperfect, managementprocess is not highly scheduled, and system is not well implemented on costmanagement of wind and power projects, which further causes the extremely highcost for the majority of substation projects. In order to create economic benefits fromproject construction, enterprises must strengthen the internal management andmanagement processes, to truly achieve the goal of "increasing benefits channels andcutting the cost".The author takes substation project of Dashui Wind Power Project as the carrier,insists on the combination of qualitative analysis and quantitative analysis, useseconomics, management (project management) to comprehensively analyze thecurrent situation and deficiency of the company in terms of the basic principles andmanagement methods of the cost control, planning and risk management of theproject. The company takes kilowatt-class benchmark as the control standard from the superior group, establishes a sound management system, and regulates strictlythe management responsibilities of the participating units, and effectively managesthe engineering change and reduces engineering claims. This company is quiteeffective in terms of static cost control; however, the dynamic cost control measuresneeds to be strengthened. In dynamic cost control, the company mainly lacksstandardized management processes, cost control awareness from managementpersonnel, and the flexibility in control measures etc. By referring to lots of relatedbooks, literature, combined with relevant theories on project cost management, theauthor has designed the optimum schemes of liability cost and target cost on the costmanagement of the substation project for the company, estimated the costs of eachproject through the specific scheme, the target costs of the cost management on thebasis of the liability cost, and then taken target cost as the final target on costmanagement of the power project. In addition, the author also tailors a whole processof cost management workflow for the company and proposes the establishment ofoverall supervision system, materials management system and other measures toassociate with it. Specific data concluded from the optimum scheme proves that theworking out and implementation of liability costs, target costs and standardmanagement processes can significantly cut construction costs and improve theeconomic benefits of enterprises. Meanwhile, in order to ensure the implementationof the design, the author has proposed some optimize measures on organizationmanagement, methods of liability cost management and performance assessmentmethods to support the cost management for the company.Project manager department is the main subject to implement cost management.In order to put the target cost management scheme into practice and achieve theexpected management effect, project manager department needs to apply a scientificand rigorous cost management processes, coupled with the active cooperation withvarious units involved. To participate in market competition, it is necessary for enterprises to develop right development strategy, investment strategy, competitivestrategy, and talent development tapping strategy and to establish feasibledevelopment goals, only in which way can it be invincible in the competitive market.I hope this paper might be of some guidance and reference for some powercompanies on cost management in substation construction in the future.