A Study On Cost Management Of Thermal Power Plant

Power industry is a basic industry that belongs to the National economy, the healthy and sustainable development playing a critical important role in the continuous development of National economy. Spending 50 years efforts, our national power industry has made a considerable progress later on the founding of our new nation, but the power industry has been run the operation mode with planned economic system for a long time, so their consciousness of cost-saving and cost management will inevitable weak. Facing many challenges of coal market fluctuation, competitive situation and power market reform, the problems have drawn our more attention, such as high cost and poor management. So under the current market system, how to strengthen the cost-control, how to avoid market risk at a lower cost, it will be the most important task which the power industry should consider seriously.Under the background, the article summaries basic theory of cost management and development tendency of it, it analyzed the new ideas of the operating cost method, the cost and cost management Planning. Based on those,I made a detailed investigation directed to the current cost of power generation business management, addressed the Power generation's output characteristic, the cost structure, manufacturing type and mode, combined with several main cost management theories, the article posed that the thermal power industry should strengthen the upper and lower Value chain management in strategic level, instead of limiting to a certain type of cost management. And then, the article analyzed the internal and external value chain of thermal power industry, and posed a new management model which based on the analysis of value chain, it unit the cost Planning on the new stage of integration, and introduced production cost analysis to the process of production which in normally manufacture, it is a comprehensive new management model. At the end of the article, gave the case of QD plant as an example, and discussed the appliance of new cost management model used in it.