The Research On The Cost Control Process Improvement Of Real Estate Of Chanfine Group

Chinese real estate, including the industry itself and the market, has seen greatimprovement after nearly twenty years’ development. Since the future market isgetting increasingly competitive, every project must determine their own competitivestrategies on the basis of their actual situation. At present there are two regularstrategies that most companies employ: variation and cost leader, but it is not smoothfor real estate companies to choose the former, therefore most companies focused onthe latter one to gain the cost strength. And the cost control of real estate enterpriseslies on a clear, systematic and efficient cost control processes, as well as a supportingpower-responsibility system. As a local representative real estate company in Hunanprovince, when facing the opponents from whole the country, Chanfine grouplaunched a management revolution through business process reengineering,meanwhile reconsidered and redesigned the cost control process.First, this paper reviews the theories of cost, cost management and processreengineering and their research trends. The second chapter gives a brief introductionto Chanfine Group and its current situation of cost control, including some problemsin cost control process. The general background of the cost control processreengineering improvement is also discussed and analyzed from multi-perspective.The third chapter discussed that Chanfine Group confirmed the principles of costcontrol based on the enterprise target, and there is also a description of the design ofthe cost control process structure and the cost constructing process based onresponsibility, which finally determined the cost target and the related process ofChanfine Group. The fourth chapter describes the plans and procedures of processimplementation and the relevant safeguard. And this chapter also discusses someachievements as well as inadequateness in the cost management process of ChanfineGroup. In addition, this chapter also provides a comprehensive view of theimplementation of the cost management process and an analysis of the after-usageevaluation.This article fully embraced the reality of Chanfine Group and has its own uniqueviews, especially the combination of cost control, process reengineering theories withthe actual situation of Chanfine Group, which is relatively less seen in existingreferences but provides new ideas for the cost control of current real estate enterprises.