Study On Operational-cost Of A Power-supply Company, Based On Standard-cost Management

After the electric power system reform, power grid companies have become self-sustaining economic entity which attached significant attention on cost management. In recent years, this work has made some progress but at the same time brought up some problems, for example, refinement level is not enough, lack of intensive, and control efforts is not strong. As a result, companies’ actual cost is not satisfyingly low enough. Power companies, as capital and technology intensive enterprises, with their major equipment of long service time and single product; and with the similarity and competitiveness of its electricity transmission and distribution, are suitable to operate standard cost management. By implementing the standard cost management, power companies can ease the pressure and cost on power grid construction, improve the regulation and control of operating costs and ultimately improve the overall company performance.Due to the above reasons, this dissertation focuses on standard-cost management. The first chapter clarifies the research background and topic selection based on the review of previous scholars’ studies and literature. Also in Chapter One it introduces the main research methodologies:comparing binding assay, theoretical analysis and normative research methods, and a case study of a power company, by summarizing the relevant principles of the standard cost management, the current status and problems of the standard cost management to analyze a power company, and gives improvements and suggestions.The second chapter lays out the research foundation of this article, providing an overview of the main concepts of the standard cost management, and analysis of the theoretical foundation system operating costs and operating expenses.The third chapter is an in-depth case study for power company A, this dissertation selects the company’s data between 2010 and 2014 and analyzes its implementation progress of the standard cost management and operating cost management through theoretical and exemplary analysis and graphic illustrations.The fourth chapter analyzes four negative power company A standard cost management problems in execution from institutional system, cost control, business management, collaborative communication.The fifth chapter gives suggestions on Company A’s problems in its standard cost management practice in areas such as perfection of its system construction, control costs and expenditures, improving management effectiveness and enhance communication mechanism. A list of possible suggestions could be:the establishment of a standard cost system cost estimates science and a scientific and standardized management system; deepening the standard cost application system; improving cost management modules, the establishment of effective operating cost management mechanism, improving operational cost accounting methods; strengthening cost analysis and assessment, compression management expenses, reducing operation and maintenance; and strengthening internal and external communication.This dissertation takes into considerations the organizational characteristics of power grid companies in China and selected power grid company A for case study. It places an emphasis on the feasibility of entrepreneurial cost regulation and expense implementation etc., in combining with standard cost management and in comparison to the analysis of the rationality of operation budget.It further investigates the difference between implementation and regulation and proposes reasonable suggestions. The findings provide insight and reference to other power grid companies when commencing cost management work.