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Budget management has been put in enterprise management practice for over one hundred years. Currently, total budget management pattern has been in common use worldwide. It is the effective means for enterprise to exert internal control, plan resource, improve management and strengthen competitive power. Also it is the guarantee system for enterprise to achieve its strategic and operating goal. It is the successful experience for successful enterprise and putting it in practice is a must for any enterprise. But in actual practice, due to some factors, some problem and weakness appear in the whole management process, which has negatively impacted on the management result.Firstly, the author explains the background, significance, methods and content of the subject research,then gives some explanations on the definition and related meanings of the management, gives the details of total budget management theory in the respects of features, theory basis, functions and effect. Through the detailed introduction and demonstration, it is concluded that it is necessary for enterprise to carry out the management.Based on the research on the management of LWB-TR joint venture company, the author gives a detailed review and summary on the actual running situation in the process of preparing, performing, analyzing and evaluating etc, and takes the needs of domestic enterprise into the consideration, especially for the refracories manufacturing enterprise for iron-steel making industry, to give an examination and analysis from different angles, then points out the existing problem and gives some suggestion on how to improve the management.Through approaching the subject, the author has got some new points of view, for example, refractories manufacturing enterprise which is planning to prepare budget should focus on, in the beginning, the determination of the performance target of products on user site. The other KPI should be determined round these ones. When general budget goal is breakdown to detailed goal, it is necessary to do on the basis of scientific and reasonable standard, more importantly, need to accompany with vivid description on the specific business action, which can arouse the enthusiasm of numerous employees at the lowest level to achieve the goal assigned to them. To make enterprise highly competitive through the management, enterprise should intensify the benchmarking action aimed to the leading enterprises based on internal comparison, need to find the weakness and associated reason, take effective measures , track the action and check the result, through recycling the process following PDCA method, to narrow the gap with leading enterprise and finally exceed it.
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