ZY Cementing Cost Management Problems And Solutions

During nearly40years development of ZY cementing company, there are more than10markets all over at home and abroad. Cost control has been the field the company focused on. With years of exploration, although it has accumulated some cost management experience, the company’s cost control of the system is still an unsolved problem. This paper integrated the modern cost management theory of strategic cost, activity-based cost, quality cost, combined with the cementing industry particularity, analyzed the existing problems in cost management and put forward the corresponding countermeasures, in order to reduce costs and enhance enterprise competitiveness.At the macro level, strategic cost thinking can solve the strategic positioning, strategic choice and strategy implementation better. On the microscopic, through the activity-based cost management can eliminate and streamline the multiplication operation and optimize the operation chain. These two kinds of management model can overcome the information distortion of product because of the traditional cost management method as well as to only pay attention to the matter and afterwards control and lead to poor control effect, etc.In this article, with the thought of strategic cost management and activity-based costing management, combined with the company’s cost management present situation and existing problems, and analyzed competition environment and cost drivers of ZY cementing company, the article put out that the cementing company should improve the cost control framework, build a single well cost management system, implement the project site selection and equipment resource allocation at the strategic view, actually balance the relationship between quality and cost, and make the examination incentive system perfect, in order to promote the development of the company.