Study On The Way Of Realizing Cost Lean Management In A City Power Supply Bureau

Lean cost management, one of the effective paths for enterprises to enhance theircore competitiveness, was originated from the manufacturing sector. It has beenplaying important role in various industries and also implemented in some individualpower companies, yielding positive results. A Municipal Power Supply Bureau，thepower supply bureau of a capital city, is under the pressure from high operating costdue to the slowing down of electricity sales growth as a result of overallmacroeconomic environment in the recent years, the rapidly rising depreciation andthe impact from CPI increases as well. Under such circumstances, it is necessary forA Municipal Power Supply Bureau to actively pursue the optimization of theessentials and methodologies towards effective cost control when the company strivesto continue maintaining its competitive advantage and improving its economic andsocial benefits. This paper intends to apply the concept of lean manufacturing intocost management by conducting in-depth study and learning the best practices of leanmanagement adopted by domestic and international companies, hence to provideeffective methodologies and ways for A Municipal Power Supply Bureau to improvecost management and financial returns. In this paper, literature analysis and empiricalresearch will be applied in the lean management theory study. Comparative analysis,qualitative analysis, field study and the Delphi method will be adopted to analyze thecurrent status of cost management in A Municipal Power Supply Bureau, assess thefeasibility and develop specific methods to implement lean cost management in AMunicipal Power Supply Bureau. This paper will put forward five methods to achievelean cost management in A Municipal Power Supply Bureau, i.e. lean costmanagement culture cultivation, establishing standard cost system, theimplementation of asset life cycle management approach on liquidity and capital costmanagement, strengthening the cohesion and integration of all information platformsand enhancing the professionalism of staff force. In addition, this paper expands thescope of cost management in A Municipal Power Supply Bureau of cost managementto cover cost management and control of infrastructure projects starting from designing stage. This raises the request for standardization in equipment selectionfrom parent company perspective.