Optimum Design Of The PG Company Cost Management System

PG Company is one of three bases for researching, developing and manufacturing high voltage and ultrahigh voltage switchgear of China and as one listed company holds a leading position in China's high and ultra-high voltage switchgear equipment industry. Cost Management is an important way to serve an enterprise's direct purpose-increasing its profit. At present, PG Company's cost management mode is based on out-of-date cost management theory and Planned Economy, and cannot keep the pace of the Market Economy's demands for the large switchgear manufacturers. To realize the purpose of surviving, developing and getting profit, a modern enterprise must focus on Cost Management and carry out reform as soon as possible to improve its management efficiency. As a result, it is a practical topic to study the case of the. cost management project in Henan PG Company.This paper first analyzes the necessity of the study of PG Company's cost management case from its financial situation, cost characteristics, and cost structure, human resource cost, material management,etc.to find the main problems existing in PG Company's cost management. Then the paper discusses the corporation's main principles and methods in its cost management and puts forward a whole plan for PG Company's cost management from the views of improving the cost forecasting process, procurement business process optimization, optimization cost management pattern, cost calculating management, cost analysis, and separate cost control,etc.The paper holds that, the implement of PG Company's cost management process can be divided into three steps and sets up a performance evaluating system for it, in which Balanced Scoring Card is applied in evaluating PG Company's cost management performance.