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Cost Management Based on Maintenance Outsourcing

Author: ChenHongMei
Tutor: CuiNanFang
School: Huazhong University of Science and Technology
Course: Business Administration
Keywords: Thermal Power Enterprises Equipment Maintenance Outsourcing Cost Control
CLC: F275
Type: Master's thesis
Year: 2008
Downloads: 160
Quote: 1
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Abstract


The equipment maintenance outsourcing has been developing rapidly in practice. In contrast , the theory of management and the decision methods about it are not very sufficient. The maintenance outsourcing decision can be considered as the using and development of“make or purchase decision”in the area of equipment maintenance. Therefore, the theory of cost management provides us with a comparatively complete analytic framework for it.In the new situation, strengthening cost management and improving enterprise competence has become one of the very important work in Thermal Power Enterprises. From the view of equipment maintenance outsourcing in power plant, the aim of outsourcing decision is to minimize the sum of transaction cost and production cost. So it’s essential to analyze the characteristic of transaction sufficiently. On the basis of it, cost control must be matched with the governance structure correctly. This thesis studies the equipment maintenance outsourcing decision based on the theory of cost management, specially in discussing the equipment maintenance outsourcing management in thermal power enterprises and how to control cost. Firstly, after introducing the related background of the research, the thesis mainly analyzes the development causes and the present research of equipment maintenance outsourcing. Secondly, the thesis analyzes the problems of equipment management and maintenance outsourcing in XiangFan Power Limited Corporation, and then from the perspective of cost control in thermal power enterprises, analyzes the costs composition and its factors. Then production cost control management is introduced under equipment maintenance outsourcing and the existent problems are analyzed in the cost control work. Finally, the thesis provides the measures and recommendations of improving cost management.

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