Application Of Value Engineering Management In Thermal Power

Thermal power company’s products are single. And connected to the grid after running, the quality is ordinary. And it means no difference in terms of functionality to meet customer, making it non-competitive. So how to achieve the lowest cost and the lowest cost to produce qualified power products will become the key to success of thermal power enterprises. As fuel costs account for about70%of the cost of electricity, and therefore how to achieve fuel procurement under the conditions determined by the market price of the lowest cost of fuel is a big problems placed in front of each thermal power business. By value engineering theory shows that in the function of certain preconditions, under certain quality of the premise, there must be a cost low.On the basis of the theory of value engineering, the paper analyzed and evaluated the management status of SD power generation companies costs. By analyzing the problems and deficiencies in the SD power generation company cost control and cost management process, the paper made a design about how to use value engineering cost management in generation companies. The design idea is to first find the key factor which impact the max value of the SD company—"Best calorific value of coal into the furnace," then determine the relationship between the unit cost of fuel and the heating value of coal into the furnace, and finally to calculate and plan out optimal unit fuel costs. This paper analyzes the management processes of value engineering in the specific application of SD generation company, as well as the conditions of value engineering implementation.