Research On Cost Management Of Iron Ore Mining Project In A Company

With the development of social economy,large scale engineering projects are increasi ng.Project management theories and methods are evolving rapidly and improving constant ly.It is particularly important for enterprises to control project cost to secure a dominant po sition in the market.In recent years,due to the macroeconomic downturn and excess global supply of iron ore,ore prices have been hovering in the low shock;meanwhile,the market is occupied by foreign suppliers due to the high production cost of iron ore in domestic enterprises,thus it’s very difficult for domestic iron ore producers to operate,and some enterprises have even suspended production.Due to downward momentum of iron ore market,it’s become increasingly difficult for Company A which produces iron ore to operate.However,this is not only caused by the downturn of iron ore market,but also caused by the problems in the project construction of A company and the daily production and operation.In this paper,taking A’s iron ore mining project as an example,the cost management focuses on the project,through on-the-spot investigation,interview and reference information,understands the cost management process,and carries out the project results,sums up the shortcomings of company A and the project department exists in the cost management work of the problem,in-depth research,finds out the reasons for these problems and disadvantages,summarizes what is worthy of reference in the cost management of the project,of course,the most important point is to focus on the lack of attention to the cost management of the project in place and to put forward the methods and ideas to solve the problems.This paper combines the theory and methods of modern project cost management,focuses on the cost management of A iron ore mining project,and in order to improve the engineering project cost management,puts forward related suggestions: The first one is to adopt the method of cost management which is scientific and rational,work breakdown structure(WBS)technology,the target cost difference analysis and earn value method applied to the project cost management process;the second one is to put forward some measures to ensure the implementation of cost management which means using cost management to ensure the smooth implementation of the project,giving full play to control to guarantee the quality of project,the timely completion of works,and finishing the project within budget.And these strategies are to ensure the implementation of the project is in the best interest of the enterprise.