Research On Cost Benchmarking Management Of The M Coal Enterprise

The coal resources are rich in China which position being the main energy will not be changed for a long time. But affected by the increasing amount of imported coal and the application of clean energy in recent years, the incremental quantity of coal has slowed down. The supplement and demands for coal are being to unbalanced in the market, the price continually declined and the economic efficiency of coal enterprise are getting worse. These factors brought great difficulties and challenges to the coal enterprises and put forward a high standard request for coal industry about cost management. Cost Benchmarking management is a scientific method to combine benchmarking management with cost management, which can reduce coal costs and promote the development of the enterprise cost management. It also can improve the level of coal enterprise cost management and bring economic benefits to enterprises.This paper has a deep study on the cost benchmarking management of M coal enterprise through case analysis, according to the related theory about benchmarking and cost management. There are the following problems through the analysis of M coal enterprises: lack of principle to guide, uncertainty responsibility of organization management, incompleteness in cost benchmarking index, imperfection in executive process, lack in support of the database, imperfection in auxiliary system. This paper improves the cost management benchmarking of M coal enterprise according to its existing problems, which include the following points: ①Stress four principles of the cost benchmarking management. ②Divide enterprise managing department into the leading group, the working group and office of the working group, and clear their responsibility at the same time. ③Establish a comprehensive index system. The value index, converting index and technical index are quantitative index. Managing index is qualitative index which means that comment on basic work and method in cost management and so on. ④ Optimize the benchmarking process of enterprise cost management. M coal enterprise should clarify criteria of the coal mine and set up the summary feedback mechanism. ⑤Set up a complete data support system. The system includes the data collection system and data analysis system. The coal enterprise should update the database regularly in order to provide timely and effective data management information. ⑥ Complete the subsystem. Link the result of benchmarking management and employee performance evaluation, which can motivate staff’s motivation. Setting up a study group can help enterprises to carry out the work of cost benchmarking management.Perfect cost benchmarking management can help enterprise implement the work better and improve the level of cost management. It also can provide reference for other coal enterprises. But it is difficult to compare for M coal enterprise with the advanced large coal enterprises, because of gaps in the scale or capacity. It can just use internal benchmarking, which leads to certain limitations in this paper. With paying attention to cost management of coal industry, improvement of the various data and researches of relevant persons, the cost benchmarking management involves more fields. It can be developed into the similar stage in same industry, domestic or world from the internal benchmarking.