With foreign investment into China has sped up the field of energy, domestic oil enterprises and transnational corporations and intensifying competition. To face the challenges of internationalization of product competition, lower costs are often the most effective competitive weapons. However, refined oil products are complex processes, associated products, process constraints and long, the true costs of products, products the exact cost of refining companies have long plagued financial officer, severely restricted the company's planning system and production of program optimization system, also affected business decisions.
"The core of the management of finance, the heart of the financial cost." Operating cost management is cost management system for traditional shortcomings developed a cost management, oil refining industry, operational cost management software to promote the oil industry of financial information in depth, accurate and detailed development. This paper aims to job cost management software applications in the petrochemical industry and the development of a few comments:
Status of the three major oil companies of financial information
By the end of 2005, CNPC officially launched ERP system project, with a unified ERP platform and centralized technical architecture appropriate to create a balanced business features at the same time tightly integrated system into coverage and crude oil exploration and production headquarters, natural gas and pipeline, refining and marketing, chemicals and marketing four major business segments of the integrated management platform. Advanced planning system in a comprehensive on-line businesses of all refinery applications, for fast and accurate preparation of refinery production planning, optimization of the original procurement, production and processing, the product provides an advanced harmonic programs and tools. CNPC subsidiary financial systems around the unity-building has been completed, the Group head office can be summarized financial information of all branches automatically generate reports.
Sinopec started from the ERP pilot in 2002, after years of building the basic framework has been formed, effectively promoting internal reform and management level. With ERP and MES data for the support of the overall budget management system and production operations command system building, and on the strategic objectives of enterprises and improve core competitiveness of enterprises, improve corporate control has played an important role. Refinery steady progress in building enterprise information system, the initial production run to achieve the dynamic of the centralized monitoring, management and coordination. MES in achieving the balance date, ten days to confirm, on the balance sheet, improve production management refinement level, the data provided support for the ERP.
CNOOC official launch of the company by the end of 2005 the ERP system construction, in June 2006, the first engineering company ERP system running on the line, in November of chemical companies, oil and gas development and utilization of companies, trust investment companies and groups of pilot enterprises, have been the Department's ERP system on-line, its self-developed "material master data management system" as ERP system can meet the practical requirements and to facilitate network maintenance and resource sharing platform. CNOOC's ERP, and promote the capital flow, logistics, information flow of the "third one", improved business processes, enhanced cost control, regulate the business conduct, to plug the loopholes in management.
Operating cost management system (ABCM)
Costing (Activity Based Costing) is a new business management theories and methods of operation is based on operating costs through the recognition, measurement and calculation of product costs. The basic idea is the product consume activities and activities consume resources, production and result in work place, work place leading to cost, operation is the intermediate product and overhead costs. ABCM core is to determine the "cost driver" concept, advocated the allocation of costs as the basis of cost drivers, cost drivers used to explain the behavior of the cost. This, ABCM and hidden indirect costs will be the driving force was linked, through the identification of more appropriate cost driver, and then to a reasonable allocation of indirect costs, effectively increase the cost of belonging to calculate the accuracy of the pricing decisions of science and flexibility.
ABCM will cost as "value-added work" and "value-added operations," the function and the "customer value" as a measure of the highest standards of value or not. On the one hand, the customer's needs and business operations occur, resource consumption, the cost of link formation; the other hand, customer value through the income of the enterprise customer needs with the link. Thus facilitating the trade-offs from the perspective of operating costs and customer value, to ensure business decision-making and enterprise value maximization objectives.
Traditional transaction-or quantity-based costing than costing more to deepen the level, and contemporary management accounting is considered a real revolutionary change.
ABCM accounting model
Model shown in Figure 1, including essential resources, process and cost object three parts. It also includes the management and distribution of motivation relationship management. Correspondence records the distribution of resource allocation path, operating and cost object mapping, dynamic management of the unified management of the distribution process because of the need for a variety of causes, including the resource and activity drivers.
The actual situation in the production from raw materials to finished products, need to go through a series of operations before and after the link, form the chain work. Job for job distribution, we can fulfill this job chain, reflect the production process. Job Assignment by operation for the activity-costing model, the system can support the work of 控制 chain and business process management, for task analysis Lai Shui, and more close to business reality.
There is also a purpose of such distribution relationship: Yes, the cost of quality, waste loss cost, productivity loss costs were managed separately. The usual model, the quality cost, the cost of waste loss, loss of productivity costs are distributed in various operations, the final cost information can not identify the cost of quality, cost and productivity loss cost waste, except through the operation to identify, but generally produce waste products operations and normal operations can not distinguish. Cost object allows the object-oriented cost allocation, cost of quality can be set up accounts, waste and productivity losses account for the loss accounts, accounts under various product lines by product category or the cost of establishing object loss, accumulation occurs quality cost, scrap cost of losses, production capacity loss costs, the final cost object can be the cost of these cost objects for the normal distribution. From a management perspective, to grasp the situation of these non-value added costs and help trace the moon for all the loss of the original, an increase of targeted cost management.
The overall structure of the system consists of five parts: data interface, activity-costing model, operating system, running costs, operating costs of information analysis and decision making.
ABCM advantages
First ABCM can provide more objective information on the true cost, timely decision-making relevance. Second, broaden the scope of cost accounting, according to the needs of management can work, job centers, customers, costing the market into the scope of work for the center to form a cost accounting system is conducive to a comprehensive analysis of enterprises in a specific product, service, customer and market its portfolio and the corresponding differences in operating profitability. Third, through the analysis of cost drivers, can reveal the cost of resource consumption occurs in the cause and effect, in order to reduce the cost of direction. Fourth, the implementation of the operating cost method is conducive to the establishment of a new responsibility accounting system. Profit potential of mining various departments to mobilize the enthusiasm, for performance evaluation.
ABCM system applications in the oil industry
The existing oil companies ABCM system functions including system maintenance module, costing module, planning module prediction and analysis, cost analysis and control module, report analysis module, system tools and other parts of the module. Of which: System Maintenance module is the basis for the entire system operation, costing module, planning module prediction and analysis, cost analysis and control module is the core of ABCM system. ABCM in some refinery trial, promotion, implementation has achieved remarkable results.
Realize the cost of refined oil products refined management
To accurately reflect the production cost, operating cost accounting processes should be closely integrated with production processes and production organization design features. Refinery production process with multiple devices, continuous processing, while output of raw materials into a kind of the characteristics of a variety of products, make the enterprise cost accounting results can reflect the production costs of various production processes, production processes must be in accordance with the procedures one by one device costing. ABCM implementation of the system to the existing branch in the oil refining unit to achieve sub-unit accounting, cost management a far greater refinement, ease of cost analysis and control.
"Costing" the establishment, so the cost calculation and control of production or refining operations deep into the level of cost management to provide more detailed data, but also improve the refinery because the cost of a single product allocation led to cost distortions, provided a more realistic product cost for the refinery decision-making more accurate cost information.
Increased cost analysis
"To improve the management, analysis is more important than accounting." Operating costs compared to traditional costing system can provide the costs associated with operating levels of information to reveal the cost of the causes and effects occur. Operating cost information must be used for decision-making in order to play the benefits of costing. Therefore, the operating cost management information system, the operating cost information of interest to the user the most part.
ABCM system cost analysis model based on the refinery the device operation, the product of planned cost and actual cost of the composition of cost analysis, variance analysis, production and management decision-making for the decision support data. In the refinery cost analysis, also introduced price, quantity, consumption of the "three factors" will be more fully and accurately the incidence of serious cost analysis, to a reasonable and effective cost control, cost analysis and effective in improving management and reducing consumption, control costs, improve efficiency of feverfew.
Optimization of the production run program
Oil business benefits are achieved through product sales to completion, the product is through a number of production units completed in a continuous process, in order to benefit in the end that arise in those few devices, each device in the end produced little benefit, the Cost of production equipment must be carried out, these devices are processed into raw materials and product prices are calculated each unit of processing efficiency, in order to achieve efficiency of the unit combined with the market, be aware of, and in order to optimize and adjust the production plan, raw materials and the limited processing capacity of enterprises to create more profits. ABCM system implementation, with its cost estimate and analysis capabilities, you can change according to market price calculated in time efficiency, the measurement data as a basis to adjust production plan to optimize the product structure, so that refinery production unit is always to achieve the maximum benefit .
Cost control to achieve the depth of
Operations management usually means reducing costs following: 1) work to eliminate; 2) operating options; 3) work to reduce; 4) job sharing. Dynamic analysis of the cost based on the ABCM system has established a variety of operations, semi-finished products and products the actual cost of operating the database, you can form a refinery fixed operating and product standards to determine the operating costs of the various elements of cost control ratio, calculated monthly operating costs of all controllable costs, controllable unit cost factors and non-controllable costs as the basis, strictly cash reward and punishment to achieve the depth of cost control.
ABCM from the traditional volume-based costing to the development of the modern work-based costing is a cost accounting of the scientific development of the trend. ABCM the development, implementation, application should note the following:
ABCM is the oil refining industry, production, finance, planning, statistics, and working in various departments, to strengthen sectoral coordination reduce the difficulty of implementing activity-based costing.
Speed up the refining industry team, workshop, branch, regional companies, headquarters of the cost analysis of information use is costing the direction of development.
Work to improve the operating efficiency of expression costing play. Only the operating cost method to provide accurate information for decision-making refinery, this approach be considered as conducive to business management.
Operating cost theory of progress should be attached great importance to software companies. In recent years, Jiun creation of an international first for the supply chain cost management system construction "CSS cost system standards" (Cost System Standards), put forward realistic "multi-object-oriented because many fruit + management + system "theory and means, to deny the former three generations of accounting standards based on" more fruit because of a "cost accounting methods and cost control.