Research On Key Decision-making Model Of Coal Enterprise's Industry-Finance Integration

Coal is the main energy in China,aceounting for more than 65%of primary energy since the founding of the People's Republic of China,and in the next 30 years,the pattern of coal as the main energy will not change fundamentally.In recent years,accompanied by the deepening of supply-side reform,tremendous pressure from cutting excessive industrial capacity,and the high degree of marketization from reform,a individual coal enterprise is unable to influence the ruarket,can only benefit from internal management for survival and development.In such a special historical stage,it is of great practical significance to promote the integration of industry and finance in coal ej:tterprises.Improving the management level of grass-roots organizations and improving the scientific decision-making of management layer is a common problem faced by the coal industry.In recent years,in order to solve this problem,coal enterprises have introduced advanced concepts and methods such as total quality management,total budget management,internal market-oriented management,activity-based cost management,and achieved good results,but far from the needs of coal enterprises.Therefore,coal enterprises urgently need to find a breakthrough and promote the integration of industry and finance just is the key to solve this problem.Coal enterprises are more urgently in need of the integration of industry and finance compared with other industries,The complexity of Geological Occurrence Conditions and production conditions of coal enterprises,and the natural disasters such as gas,ground pressure and groundwater peculiar to coal mines,lead to the special emphasis on standardized management of coal mines,which inevitably leads to a clear division of labor among departments,strong specialty,and eventually leads to a serious separation of industry and finance.Therefore,eoal enterprises are more urgently in need of financial integration than the general manufacturing industry.At present,there are several difficulties to be solved in the implementation of the integration of industry and finance in coal enterprises:first,to formulate budgeting rules applicable to coal enterprises;second,to use Activity-Based Cost Management in the process of implementing the integration of industry and finance;third,to introduce the idea of integration of industry and finance into the production line of coal enterprises;fourth,to introduce the idea of integration of industry and finance into the decision-making level.The paper mainly focuses on these four issues,including the following contents:(1)The dificulties and problems to be solved urgently in the integration of industry and finance in Coal Enterprises.Re-defining the integration of industry and finance:Financial departments and business departments jointly promote the establishment of necessary financial links between business entities.This definition reveals that the essence of the integration of industry and finance lies in transforming a large number of business variables into financial variables.Moreover,with the new financial variables gradually forming a standard system,the level of financial management will achieve a major breakthrough.(2)The budget framework system and formulation rules basted on the integration of industry and finance in coal enterprises.So far,coal enterprises have been using historical data as the basis of budgeting.In fact,most of these historical data are the material collection data from grass-roots units,rather than the actual production data.Even if it is the real production data,take the bolt as an example,only record the consumption of the bolt,but not the basic information such as the position of the bolt,the parameters of the bolt,and the person responsible for the construction,they are still unable to get the analysis results that policy makers want.So on the one hand,it is the advanced budget management software;and on the other hand,it is meaningless data,which is the real situation of the current budget management of coal enterprises.Dividing the coal enterprises into five levels of budget subjects,such as group companies,coal mines,District teams,teams,operations,and the autor formulate the budgeting rules of coal enterprise,which are mainly based on zero-base budget and supplemented by flexible operation and rolling budget.Zero-based budget can improve the accuracy and scientificity of the budget,flexible budget can reflect the change of production conditions,and rolling budget can simplify the budget process.The budget formulation rules have promotional value in the whole coal industry.(3)The Activity-based Cost Zero-base Budget Model based on the integration of industry and finance in coal mine.Taking a basic cycle of coal mine tunneling technology as a data unit,and dividing three-stage operation.The zero-base budget model based on activity-based costing,can best embody the idea of financial integration,and has the promotion value of the whole coal industry.(4)Financial decision-making model of roadway support in coal mine based on the integration of industry and finance.The primary production organization of coal mine is the focus of coal enterprise management,is also the most serious separation of industry and finance.By constructing a mathematical model,the author shows the process of roadway support design by technicians using financial data provided by financial personnel,constructes a financial decision-making model under three conditions:horizontal roadway,inclined roadway and gob-side retaining roadway,shows the process of transforming business variables into financial variables.(5)Decision-making model of prolonging mine service life based on the integration of industry and finance.Scientific decision-making from management layer is another important problem in coal enterprises.Based on the theory of sunk cost,and taken whether the coal seam can be mined as the decision variable,the author establishes the business logic relationship between decision variables and financial variables,which has formed the decision criteria.Decision-making is not only of great economic significance to mining areas,but also of great reference value for the whole coal industry.Through the author's research on the whole paper,the following clear conclusions can be drawn that the integration of industry and finance in coal enterprises can greatly enrich the content of financial management,improve the management level of grass-roots organizations,and improve the scientific decision-making level of management layer.