Study On EVA-oriented Total Budget Management System Construction Of Central Enterprise

The total budget management as an indispensible management process during corporate management, which evolves from initial planning and coordination functions to present functions like control, motivation and evaluation, etc., is an overall management tool passing through the whole corporate business strategy and plays a core and guiding role in corporate production and operation.As a proverb saying “preparedness ensures success and unpreparedness spells failure” which is acknowledged by almost every enterprise, but how to combine the total budget management with the strategic plan and reach the target of maximum corporate value has become the issue which an advanced enterprise shall focus on. This paper, through construction and implementation of a total budget system based on economic value added(EVA), urges the enterprise managers to pay more attention to the quality of creating profits than to creating profits itself, and means a lot for raising corporate management level, particularly necessary for the central enterprises which play an important part in China.The way to summarize the construction of EVA-oriented total budget management system of central enterprises is as follows: firstly, start with introduction and raise the issue(raise a question), analyze the present EVA-oriented total budget management system of central enterprises through study on related theories(analyze a question), establish a preliminary EVA-oriented total budget management system of central enterprises and take Puzhen as an example to analyze the status-quo and propose a solution to the existing problems(solve a question); secondly, start from EVA(P: plan), concentrate on the principles and detailed method for the planning of total budget(D: do), carry out process control and analysis for the budget enforcement(C: check), last but not least, carry out performance evaluation and experiential summary(A: accounting), thus to realize an EVA-oriented total budget management with PDCA cycle. Thirdly, taking Puzhen as an example, make an analysis to the status quo of Puzhen, pose the existing management problems on total budget management, propose concrete suggestions for construction of EVA-oriented total budget management system of Puzhen and give warnings, instructions and summary for the problems which are to be encountered during the implementation; last but not least, elaborate the execution and guarantee for the EVA-oriented total budget management system of central enterprises.