Research On Comprehensive Budget Management Of JCC Construction Project

Comprehensive budget management is one of morden management modes for enterprises, which with systematism, strategy characters and based on human resource ideas. This kind of management can reach to the aim of distributing the resource logically, cooperating with different operation levels, performing the strategy effectively, runing with continuously improvement and increasing the evaluation stably by integrating the operation service, finance and information as well as by decentralizing of power, delegation of authority and evaluating the strategic driving. From the microsopic point, this kind of management are useful to improve the effect and interestes of management. On the other hand, it is a sort of essential method to use the marketing regulations to optimize the resource distribution from the macrosopic point. Its effective characteristics are proved by different organizations.JiLin Chemical Engineering & Construction (JCC) Company which belongs to a construction and installation enterprise, owns rich and practical experiences in buget of engineering projects. Recently, the marketing competition getting worse, thus the price of the acceptance of bide getting more and more poor, while the fees of the materials and the man power cost increasing cause the diminishing of the interests for the enterprise and overspending the project budget happing. Briefly, the application of the comprehensive budget management for the engineering projects in JCC company is with especial importance.This work builds the control system on the application of the comprehensive budget management in the engineering projects at JCC company, which bases on the lucubrating for the theory of comprehensive budget management and the designing & researching on its application. Also, more reasonable suggestions are proposed on the joint between the strategy and comprehensive budget management, the confirmation of the budget aiming as well as the editing, performing, controlling and evaluating on the budget. Some optimized methods are proposed here by analyzing and evaluating the existed problems. Firstly, by researching on the theory and developing the comprehensive budget management, this work presents the feasibility of its application on the engineering project in JCC company. JCC company is a kind of engineering construction enterprise, which is with the engineering budget experience and the costing management experience, which belongs to one part of the project management can build a good basis for improving the comprehensive budget. It shows the necessity for applying the comprehensive budget management. It is an effective method to control the cost, an importance guarantee for reaching the general aim and a scientific reference for evaluating the enterprise evaluation. Meanwhile, the engineering project in JCC company is with mature condition for its applying. JCC owns the optimized flat management hierarchy guaranteeing its performance; there are more than 2600 technicians and managers in JCC company which assures the man power for the comprehensive budget management; the experience in engineering budget and management on work ration can build a good basis. Also the rich bidding pricing and the different regulations on the management report form donate great documentation basis for applying comprehensive budget management in JCC company.Secondly, this work considering the enterprise's characters to build the control system of the comprehensive budget management for the engineering project in JCC company. During the design process for the comprehensive budget management, the suitability regulation should be insisted, which means based on the enterprise's reality and conformed to the existed regulations to make it with maneuverability and guiding property; the tough and soft joint regulation should be insisted, which means keeping the comprehensive budget management to build up the seriousness of the comprehensive budget management, on the other hand, keeping the soft property of the comprehensive budget management to assure to perform the project budget effectivity; the general regulation should be insisted, which means that the regulations should cover the service proceeding, the duty and responsibility relations between different departments and the following work et al. Two levels management regulation should be insisted, which means that company and project department together manager and accounting to assure the distribution of the resource, the fast delivering the information and powerful performing the regulations.Comprehensive budget management consists the guiding line and aiming, organizations, duty and proceeding for the application of the control system on the engineering project at JCC Company. The project guiding line & aiming and the developing strategy conformed to the enterprise general one, as well as the culture part. The setting of the organization department should insist on the regulation of effective organizing arrangement and the control scope, the combination between the regulations of centralization of state power and decentralizing of power, the equal regulation of responsibility and right. The organize department should cover all departments. The function of different departments and the control duty of the different position should clearly describe the control scope and content as well as declare the responsibility and aim for each employee. From the analysis of the engineering project comprehensive budget management proceeding, it shows that its whole employee, whole proceeding and whole direction management engineering characters. Meanwhile, the edition, performance, control, examination of the budget is a kind of active management process.Thirdly, some logical advices are proposed on confirming the project's aim, the edition, performance, control and evaluation on the budget. Project need combine the exterior situation and interior resource to set the budget aim; the edition of the budget based on the aim of the project budget, meanwhile the aim of the project budget is concretion and quantified through the edition of the budget. The performance of the comprehensive budget management need build the regulation of the budget responsibility, inspection and accounting regulation; budget adjustment regulation and feed back of the budget control. The emphasis is on the cost and control fee including the main material fee, the machinery fee, management fee, quality cost and performance period cost et al. The lifeline for the budget work is the examination and the commendation & penalization for the result of the budget. The budget performance situation will connect with the employee's interest, which will band the employee's duty, right and interest with enterprise'together. For making the examination to be logical and the budget work effectively, the combination between the active and general examinations of the budget should be insisted, the combination between the control exationation and evaluation examination should be insisted.Finally, evaluate the exsited problems on the application of comprehensive budget management and propose some improvements. 1. The interim for the application of the comprehensive budget management is needed because that the employees need some time to know of and accept it. 2. Due to the consideration of the whole situation, leaders might make some exceptions out of this regulation and thus the seriousness is broken and with more arbitrary. 3. Currently,'three while'are the characteristics of the projects, which means that designing, performing and drawing are done during the same period. Before the project is performed, the cost only can be estimated and the elasticity of the estimation is relax, which is not good for the detail budget of the whole project. 4. The comprehensive budget management is poor at the flexibility. The modulation of the budget need the manager conference to examine and approve, thus it takes long time, makes it difficult and not good for the performance of the comprehensive budget.Few advices on comprehensive budget management are proposed: Organizing learn and performing the theory of comprehensive budget management and the enterprise's rules; Organizing the investigation, controling and performing the feasibility of the budget management on the regulation, as well as building the proceeding design; Emphasizing from enterprise's managers, for instance, to set'main power engineering'; Using it on the information technic control when it is possible.In brief, the application of comprehensive budget management in JCC Company will improve the cooperation and communication between the different departments, will be useful for enhancing the cohensiveness of man power; will realize the project aim and take its responsibility. Comprehensive budget management suits with the development of the market economy and it will take the function to strength the interior management for corresponding constructed enterprise, exploit new market and improve the effect etc.