Research On The Application Of Total Budget Management In NE Group

Comprehensive budget management came into being in General Motors in the United States at the beginning of the 20 th century.After continuous improvement and development,comprehensive budget management has formed a management mode that includes planning,coordination,control,incentive,evaluation and many other functions to carry out the overall production and operation activities of the enterprise.National "14th Five-Year Plan" proposed to "keep the proportion of manufacturing industry basically stable,consolidate and strengthen the foundation of the real economy,support the transformation and development of old industrial bases",and the application of comprehensive budget management has become an indispensable part of the internal management of manufacturing enterprises.With the rapid development of market economy,China’s large group enterprises took the lead in introducing and practicing comprehensive budget management in the early 1980 s.However,compared with western countries,the application of comprehensive budget management in Chinese enterprises has not reached the expected effect,and there are also some problems such as unscientific budgeting process and method,insufficient budget control ability and low information level of budget management.Based on this,this paper selected NE Group,a large auto parts enterprise located in the northeast old industrial base,as the research object,through the case analysis of NE Group,and then discussed the optimization suggestions of comprehensive budget management.Field research method and case analysis method,this paper details the NE group comprehensive budget management status,comparison and analysis of the actual final accounts of the budget implementation and related data,summed up the NE group budget management organization are lacking,budgeting process is difficult to meet the needs of the strategic leading,lacking the ability to budget control lead to the inaccuracy of budget execution,budget,analysis of superficial,budget evaluation index and index accounted too one-sided,the informatization level of budgeting management needs to be improved.Through the analysis of the current situation and data of NE Group’s comprehensive budget management,this paper,combining the excellent cases of budget management and the actual situation of NE Group,suggests that NE Group should set up a special budget management department to engage in budget work,so as to improve the rigor and authority of budget work.Adjust the budgeting process to make it more responsive to the need for strategic leadership;Establish a red,yellow and green budget warning system to strengthen the Group’s control over the subsidiary companies;Give full play to the synergistic effect of internal feedback and grass-roots research,and ensure the control and analysis of budget work from both internal and grass-roots perspectives,thus saving time and labor costs;Establish a differentiated evaluation system based on BSC,so that the evaluation results can better reflect the production and operation conditions of each unit;Strictly implement the system of linking evaluation with employee performance to motivate the enthusiasm of employees and facilitate the development of budget work.The ultimate purpose of this study is to help solve the problems existing in the application of comprehensive budget management in NE Group,to provide some reference for the work of comprehensive budget management,and also to promote the development of comprehensive budget management through the case study of this paper.