Research On Cost Control Of V CHP Based On Value Chain Theory

With the deepening reform of China’s electric power market,combined heat and power(hereinafter referred to as CHP)enterprises are facing fierce market competition.How to survive and develop in the fierce market competition,the CHP enterprises need to continuously optimize and improve their cost control,which will be the key basis for the CHP enterprises to maintain competitiveness and sustainable profitability.At present,most of China’s CHP enterprises still use the traditional cost management mode finding effective measures to reduce costs by itself.CHP enterprises should find the shortcomings in the cost control of enterprises to improve from the perspective of value chain,the internal and external,horizontal and vertical comprehensive analysis.The thesis researched on the value chain theory,cost control theory,cost control theory which based on the value chain theory by literature research method,and introduced the organization chart,production process,cost composition,cost accounting of V CHP by case analysis,comparative analysis and survey analysis method.In view of the actual production and operation of V CHP,the cost control of V CHP was analyzed and studied which based on the value chain theory.The detailed analysis and research was carried out from three dimensions including horizontal value chain,vertical value chain and internal value chain.The gaps and deficiencies in the cost control and value creation of V CHP were found through the horizontal comparison and analysis with the CHP enterprises in the industry and within the group,also the effective cost control measures were developed.Through the vertical value chain analysis,V CHP and the upstream and downstream enterprises in the industry were considered as a whole for analysis,and effective cost control measures were formulated.Through the analysis of each operation chain in V CHP,the high efficiency operation and low efficiency operation,value-added operation and non-value-added operation in each function of V CHP were found out,and improvement measures in the low-efficiency operation were pointed out.In the thesis,the value chain theory and cost control of CHP were combined.The improvement measures and direction were pointed out through the value chain cost analysis in different dimensions,which can make CHP enterprises more effective cost control and competitiveness improvement.The thesis has certain reference significance for the value chain management and cost control in CHP industry.