Research On Physical Assets Life Cycle Management Of H Company

As a representative of capital-intensive and technology-intensive enterprises,power generation enterprise is characterized by diversity,expensiveness,huge stock,long cycle of capital construction,excessive management processes and strong determinant of its physical assets.Improving the ability to manage physical assets is of strategic significance for increasing corporate operating efficiency.Additionally,since 2016,the power generation market has been confronted with a severe situation where power generation enterprises encounter multiple challenges from market risks and policy risks,coupled with a drop in both quantity and price in the provincial electricity market,soaring coal costs,late implementation of the policy of coal price and electricity price linkage and so on,as a result,the profitability of power generation enterprises was cut in half.What’s worse,in 2017,coal price hit a historic high,power plants of national five major power generation groups suffered from massive loss,and the ability to preserve value and profitability of national assets was worrying.Therefore,in the practice of physical assets management,it is urgent for power generation enterprises to introduce new scientific concepts and new management techniques and enhance their ability to preserve or increase the value of state-owned assets.Lifecycle management of physical assets is a new concept of state-owned assets management for physical assets featuring all-dimensional management of all processes from planning and design to disposal.The core of this concept is to focus on optimizing costs of physical assets throughout their life cycle for the purpose of long-term benefits and making an all-around plan without rigidly sticking to a time,a place or a specific process to maximize overall economic benefits during the duration of physical assets by extending output-input ratio.Exercising lifecycle management of physical assets of power generation enterprises is to shorten the duration and frequency of maintenance,extend service life of physical assets and reduce total costs of physical assets throughout their lifecycle to maximize overall revenue while ensuring reasonable planning,good design,high-quality project,safety of equipment and reliable operation.This article is mainly based on research findings of scholars at home and abroad and conducts an in-depth study of present management modes,workflows,existing problems and causes of power generation enterprises at each stage of the lifecycle of physical assets including planning and design,infrastructure bidding,financial management,operational maintenance and disposal with research methods such as document analysis and case analysis and by combining with the current situation of physical assets management of power generation enterprises.After an in-depth analysis of every management process,the article proposes a batch of instructive suggestions for different management stages.With rapidly lifted level of informatization,one-to-one correspondence between records,lists and assets is realized by improving the hierarchy and depth of the formulation of cards for physical assets and collecting original assets records,costs of overhaul and technical reformation are truly allocated to specific equipment,and the concept of lifecycle management of physical assets which used to be always at the stage of theoretical research enters the practice stage.Over time,data on corporate lifecycle have scale effect,analyzing data on administration costs of physical assets through their lifecycle and sorting out factors that influence the marginal cost of products will effectively enhance the precision of existing evaluation of equipment operating costs,strengthen targeted operation and maintenance of physical assets;at the stages of planning for new sets,bidding and equipment selection,this management model will also intensively release the management bonuses,breed the best DNA for new projects,and earn maximum innate advantages.Lifecycle management of physical assets is an innovative management method for ensuring the quality of assets owned by power generation enterprises,increasing income from investment and effectively avoiding the risk of frequent accidents caused by the one-sided pursuit of low costs.This management method not only provides corporate physical assets management with a new point of benefit growth and management perspective but also provides the power generation industry with a new endogenous impetus for sustainable and healthy development.