Cost Management Thinking Of Sunbeam Polysilicon Company

In recent years,internationalization of the economy and industrial upgrading and restructuring has play profound impact on enterprise production and business activities.Fierce competition and rapid technological advances are moving to promote the change and development of financial management.This paper discussed how enterprises through the application of modern financial management information system for the production and operation management during the implementation process,helping companies to optimize the management and operation processes,thereby reducing business risks,to help companies make strategic and tactical decision.In the field of solar photovoltaic products,technology upgrades and intense competition is extremely significant,global competitive strategy are inevitable,as how to deal with climate change,the financial management focusing the cost management that enable enterprises to remain competitive and innovation advantage is the key to this article.The purpose and meaning of this paper is to achieve "cost leadership" strategy and help Xxx survive and grow in the industry consolidation through strict financial controls to reduce business risk and optimize cost management to help corporate decision-making and advance the layout.Sichuan Xxx Silicon Technology Co.,Ltd.was established on October 8,2000,originally from the Emei Semiconductor Material Factory,Glencore Leshan Electric Power Co.,Ltd.(now renamed as the "four Chuanjia to Kerry Power Co.,Ltd.",hereinafter referred to as "Ka power company Glencore"),Leshan City,State-owned Assets Management Co.,Ltd.(hereinafter referred to as" Leshan State-owned operating company,")a limited liability joint venture company.Company was set up,twists and turns through several changes in capital increase and shareholders,as of December 31,2009,the company's total assets was 1.6398 billion yuan,liabilities 526,300,000 yuan;registered capital was 30,850 million,among which:Sichuan Investment and energy investment 12,000 million,accounting for 38.90%of total registered capital,invested 11,000 shares of Tianwei change yuan,accounting for 35.66%of total registered capital,Venus holding company invested $ 72 million,accounting for 23.34%of total registered capital,Glencore Kerry power company invested 400 million,accounting for 1.30%of total registered capital,Leshan Electric Power Company invested $ 2.5 million,accounting for 0.80%of total registered capital.The company's business scope:production and sales of polysilicon,silicon,silicon cutting,grinding,polishing films,high purity metals,and their comprehensive utilization;bearing with polysilicon production-related engineering and consulting services.Xxx polysilicon products company has set up Sunbeam Engineering Technology Co.,Ltd.to spread risk and increase industrial chain advantage.The company is a wholly owned subsidiary set on June 26,2008,with registered capital of 120 million yuan.Operating range includes silicon,semiconductor technology consulting,training,technology development and design;production and sale of silicon and its deep processing products.Sunbeam project engineering company located in Chengdu Shuangliu County Southwest Airport Economic Development Zone,according to the project feasibility study,the estimated total investment is 398 million yuan,occupy 160.98 acres of land to build deep processing base for the polysilicon and silicon engineering technology center.Deep processing base is designed to set silicon single crystal production,chip production lines,power lines.Xxx undertook country's first thousand tons polysilicon production line pilot,successfully broke through the China International Solar polysilicon material on the blockade,fulfilling the mass production in the country first.However,because of the higher profits in the industry early years,soon lots of the domestic enterprises joined the production capacity expansion.The competition gradually intensifies,and industry gross margins fell sharply,many domestic and foreign counterparts had to seek bankruptcy protection.How to grow and maintain its core competency in an extremely volatile market environment is the real and urgent issue faced by the management of Xxx.According to market data analysis,growth rate of PV construction projects in major markets is too high,leading to the burden of government subsidies growing continually.The major market-Europe is facing an unprecedented financial crisis,PV subsidies will face the dilemma of decrease or to set a maximum limit.PV market demand significantly reduced subject to electricity price limits,and meanwhile new capacity is springing up constantly refreshed,so the industry reshuffle is inevitable.Now in the solar industry,the reduction in production costs far less than the speed of price decrease,industry profit margins are continually shrinking.As market competition intensifies,the industry will step into the integration of industry resources in the next decade.How to grow and maintain its core competency in an extremely volatile market environment is the real and urgent issue faced by the management of Xxx.Through research and analysis to several types of industrial enterprises,He author found that the PV industry is one of the China's most internationally competitive industries in the world,but because most of the markets are in foreign countries,the recent European debt crisis has intensified,the industry is faced with rapid technological advances and critical trade protection.Enterprise should urgently strengthen internal capabilities to meet industry changes.The rapidly changing PV market environment leads to the traditional financial accounting system being difficult to adapt to rapid management decision-making requirements.This article will through the production and technological progress of polysilicon and single crystal silicon that Xxx company involved in to start research and analysis in stages to explore how to use modern financial management tools,combined with financial accounting standards and corporate governance practice,financial reporting and accounting to meet the needs of the internal and external reporting,to facilitate effective cost management conducive to the development of strategic and tactical decision-making,architecture management organizations,to promote the process control,achieving business objectives.PV products in the year 2011,experienced the change from a seller to a buyer's market,with the deepening economic crisis abroad,the market situation will be worse.In order to survive the cracks and grow,enterprises should have scientific financial management,cost management,advance forecast,the choice of products and innovation.This study will focus on Xxx how to deal with the company's cost management and environmental change to expand the discussion.According to industrial enterprises general rules of cost management,in accordance with full cost-caliber,the research started from raw material,production to sales of the whole process of loan recovery studies to determine the proportion of the cost structure and distribution of key sub-ideas about the work of verification.Through the implementation of on-site field observations,information on the company's performance management system,and telling to people all aspects of the responsible consulting,workflow docking analysis,access to raw materials,documents matching,verification of accounts,sorting and other computer-aided research methods of work,Working Group on Xxx company form of organization,process characteristics,cost elements and imputation methods,cost management systems,etc.With the implementation of the overall understanding,but also basic grasp of the Sunbeam Corporation forms the basis of product cost data and its variation found in the management of a number of problems and weaknesses,Sb can lay a certain foundation targeted for the next phase of work.Xxx company headquarters and subsidiaries are principally engaged in polycrystalline silicon,monocrystalline silicon,slicing the production and sales,and a small scale of training business.Production methods due to several major,differences:Chemical methods,physical methods,as well as semi-chemical,semi-physical apects,these aspects of cost accounting have their own characteristics,both sub-species,but also points aspects of accounting.From the industry's overall trend,the high-end electronics grade products and production processes of new breakthroughs in thin-film solar cell conversion rate after the large-scale application of polysilicon supply and demand will have a greater change.The main demand for polysilicon from the new solar photovoltaic industry has formed the international low-cost,low-power solar grade polysilicon production of new wave of technology,and tended to make the production of low purity of solar grade polysilicon production technology and high purity electronic grade polycrystalline silicon technology to distinguish,in order to reduce the cost of solar grade polysilicon production,thereby reducing the manufacthring costs of solar cells,thus to promote solar PV industry.It was decided the polysilicon production processes be accounted for by species law,but because chemical processes can not be interrupted and matched with the use of sub-step accounting of polysilicon products can not be achieved.However,monocrystalline silicon products and links to support management decisions and optimize the cost structure necessary to work in the sub-method of accounting is based on the imputation of the cost of sub-species.From the company production organization and process characteristics to see the company polysilicon production method using modified Siemens process(pressure reduction system uses micro-technology),the 80%of world polysilicon production is through improved production technology of Siemens.The main production processes and procedures includs synthesis and purification of trichlorosilane,generating polysilicon deposition reduction,exhaust recycling and other aspects of hydrogenated polysilicon production with multi-link,closed,and loop production process characteristics,which also determine the formation of products cost and the basic content of company cost management.In the material procurement and supply chain,the cost mainly structured by outsourcing three main raw material trichlorosilane,chlorine,silica fume procurement cost;in the production areas,the cost elements include synthesis,purification,restore the necessary Energy consumption(gas,electricity),labor costs,depreciation costs,maintenance costs,security,maintenance and other costs;part in product sales,cost of sales consisted mainly of a byproduct of polysilicon production-silicon tetrachloride Sinotrans costs and product shipping;In addition,the overall operation and management associated with the company management fees and finance charges also constitute an important part of the full cost of the product.This report based on sufficient research and data collection,first take an overview and introduction to the industry,then introduce target company products and features analysis;by analyzing various aspects of cost behavior of the distribution,cost allocation and optimization costs incurred,in the base of traditional accounting,introducing targeted changes in cost and operating cost,in accordance with the analysis of quantity of principal and interest,then studies and compare the cost for the company and management;through the methods of financial management to imputation the product cost and data mining,first identifies business risk and then designes and make recommendations for management according to the firm's specifications.