The Cost Control In The Process Of Power Plant Boiler Design Of HG Co.

The utility boiler is a special commodity, which requires a long design cycle,complex manufacturing technology and production process. As one of the importantdevices for the thermal power plant, the utility boiler is also a key commodityhaving a close bearing on the national economy and the people’s livelihood. As themost well-known boiler manufacturer, HG should ensure not only the quality of theproduct but also the control for the cost of the product to be more profitable, injectinggreater impetus for the corporation’s development toward the direction of "higher,stronger".In recent years, the electricity market at home and abroad has grown rapidly,approaching to the market saturation. That follows intensifying competition amongthe electric manufactures. Bid-accepting with the lowest price has become anobjective fact. How to reduce the cost of the product is an urgent problem that all themanufactures face. The traditional ways to reduce costs include enhancing qualitymanagement, raising labor efficiency, and cheapening the cost of raw materials,personnel costs and manufacturing costs. For the research on lowering manufacturingcosts of the products, these measures can’t be denied to be incorrect. However, for theboiler manufacturing enterprises, these measures ignore an important pre-productionstep--design stage. Once the product is molded and put into production,80%of thecost is determined. That means that once the product design work is completed, themost cost has become blinding, the cost control at the later stage works lesseffectively. Therefore, we should pay more attention to the cost control at the productdesign stage to improve the effect and efficiency of the cost control.In this paper, I put forward some ideas and measures to control the design cost of the utility boiler by means of my experience in boiler design work and the costcontrol theory. Firstly, the paper starts with stating the importance of the cost controlat the design stage, putting forward the concepts of cost and cost control, and thebasic methods to control cost. Next the paper states the the actuality and existentquestions about the HG’s cost control at the product design stage. And then the paperproposes improvement measures to control cost at the design stage. Finally, itdiscusses the implementation guarantee measures to control cost at the design stage.The design of utility boiler products contains five stages---product developmentand design, design of bidding plans, initial design, technology design andconstruction design. The job content in every stage is different. Cost control shouldfirst determine the target cost of products during every design stage. For HG, theplanning of target cost should first analyze electric market, starting with meeting theusers’ requirements for product performance, quality and price to determine productmulti-level target cost and spare parts multi-level target cost. After the target cost ofproducts is determined, we should apply value engineering to analyze all thefunctions of the product, thus determining functional evaluation coefficient and costcoefficient of products. Then we improve design plan according to the account resultto determine the final design plan. To control the product cost during the design stage,we should also strength the standardization generalization and serialization ofproducts in the product design and optimize the design cycle of products.To control the cost during the design stage is the most effective way to reducethe cost of the product. Controlling the cost of the product at the design stage cannot only control the cost of the product most actively and accurately but also reducethe cost of the product to the largest extent. Determining the target cost of the productand optimizing the corresponding design by value engineering will propose a newidea for the designers in the boiler manufacture companies and have some referenceto reduce the cost in the design stage in other industries.