Discussion On The Total Cost Management For The TB Company

Recently, with the shifting of the priority of national industry, the change of market environment, which including that the of development of the Transmission and Transformation products is towards the direction of high technology, and the normalmarket demand in Transmission and Transformation Industry is shrinking, has intensified the market competition for small and medium-sized power transmission and transformation companies. Meanwhile, with the deterioration of market environment both in abroad and domestic, the huge amount cost in raw materials, labor cost, equipment cost, and transportation cost have resulted in the rising products cost, which leads to the profit margin becoming less and less for the enterprises. Additionally, with the credit tightening, the increasing of R&D investment, such factors increase the pressure of survival and development for companies. In order to survive and develop, how to control the cost effectively becomes the key point for company management, considering the product quality in the same line.Small and medium-sized power transmission and transformation companies can not only depend on the cost management in a certain process against the current crisis and challenges, but also should take the company as a whole to promote cost management system and level comprehensively and systematically. The total cost management is the internal cost management of all employers, all-around, all processes in the company. The sound and complete cost management system shall include the three points above.Based on the questionnaires handed out to TB employers, this paper found out the following problems in the cost management of TB company: weak consciousness of cost for workers, incomlete cost management evaluation and motivation system, quality problem has led to cost ring, increasing materials price led by market environment changes, backward cost management. In order to solve the problems above, this paper chose the total cost management theory as a theory foundation to build cost management system in TB company, after expounding various cost management theories.From the aspects of all employers, all-around, all processes cost management, this paper proposed specific suggestions for the key link of TB cost management, and put forward the specific methods and measurements based on the cost analyzing and cost control in the afterwards cost management, to complete the total cost management system in TB, and put forward more thorough suggestions to completely build up cost management system in TB.