Five Companies Strengthen Cost Management

The current downturn in the construction industry as a whole, affected by many construction companies are facing the winter of development. However, the difference between the economic situation of China Railway Construction Corporation and the 15th Bureau Group is different from that of the Depression. 66 projects under construction are still booming and the production situation is booming. Strict and delicate cost management is one of the winning weapons that the company adopted in the face of a cold economy.

China Railway 15th Group Corporation 5 companies currently have 66 projects under construction and are located in more than 10 provinces (municipalities) across the country. This poses many problems for project management. For this situation, the five companies are based on the status quo, face difficulties, and innovate to build the essence. New ideas for safety and cost management work have made cost control infiltrate every aspect of the construction process. Strengthen propaganda, establish economic awareness of all employees, unify ideological understanding, conduct economic education from project management personnel to construction personnel, and instill awareness of conservation, so that every employee can put project cost management at the main position, only The construction of a strong cost awareness in the construction project, cost management objectives can be implemented and implemented in the construction company cost management. Implement new measures, enforce cost management, dig out their potential, and increase revenues and expenditures. In addition, the salary bonus is linked to the quantity and quality of work, so that the assessment results are linked to each person’s salary income, so that everyone realizes that cost management is not only an enterprise thing, but also a matter for each employee, reducing costs is increase income. Pay close attention to the standardization of safety quality, reduce expenditures and reduce consumption, continue to improve the production and living environment of employees, make the three civilizations of enterprises go hand in hand, keep a good momentum of development, show good safety, high output, high profits, and low cost Strong cultural situation.

Executive Director and General Manager of China Railways 15th Bureau Group Co., Ltd. Gong Yuansheng repeatedly emphasized that the competition faced by our construction companies is unprecedentedly fierce. Affected by various factors such as policies, economy, and markets, together with the poor internal management of enterprises, we are struggling and the profit space is getting smaller and smaller. In the current fierce market competition, the only way out is to strengthen internal management and control construction costs. Therefore, how to effectively control the construction cost of the project becomes the fundamental point for the construction enterprise to be in an invincible position.

The funds for each project are very tense and difficult to operate. As a result, the company has firmly established a tight-thinking ideology, established safety as an efficiency ideology, strengthened cost management, tapped its own potential, implemented new measures, cut costs and cut expenditure, and saved expenditure. Consciousness is deeply rooted in people's minds and they jointly resist the cold market. Persist in taking safety benefits as the center and the construction of safety production system as the guide, effectively improve the overall quality of employees and the level of scientific and technological equipment, establish and improve sound rules and regulations, and standardize and scientific management systems, realize the management zero limit, and regularize safety inspections. From time to time, everyone. Strict cost management allows cost control to penetrate into every link of the production process. Starting from a big point and starting from a small point, each employee in each position is cost-conscious and cost control is more feasible and operational. It is necessary to strengthen the education on the situation and tasks of the workers and employees so that the employees understand the enterprise, understand the enterprise, and support the development of the enterprise, and share difficulties and grow together with the enterprise. It is necessary to take the construction of the safety production system as the guide, unify the thinking, form a consensus, define responsibilities, and conduct strict assessments so as to form a powerful combination of system construction, so that the construction of the safety production system can be fully promoted, and the cost management of the project can be made accountable, right, and profitable. Clear and clear, put an end to evasive criticism, all rules to follow, well documented to form a complete cost management responsibility system. Seek the dynamic balance between “quality, duration, and cost”, find the optimal balance, minimize the sum of costs, and tightly focus on the various steps that affect the cost change, so that the traditional cost management model can be predicted and decided beforehand. The control adjustments, post-analysis assessment changes, and the establishment of a new cost management concept will be a prerequisite for doing a good job in the management of corporate costs.

Strengthen management, strict rewards and punishments. The "Project Materials Management Rewards and Punishment Measures" was issued. If any damages or losses are found on the site, the user shall be promptly ordered to issue rectification within a time limit. At the end of each month, according to actual production tasks and completion of each unit, compare the amount of material that should be consumed with the actual consumption, analyze the causes of excess material use in a timely manner, find loopholes, distinguish penalties and rewards, and conduct strict assessments to achieve closed management of production material consumption. .