Determination and assessment of contracting cost indicators of contractual cost management of coal enterprises: a case of Chengjiao Coal Mine

In recent years, coal enterprises introduce the contractual cost management mode, relacing the traditional administrative command cost management mode. Through the “contractual” way, coal enterprises have established a mechanism for the active participation of all employees in cost management within the enterprise, which effectively solves the management problems such as poor sense of responsibility. However, with the in-depth promotion of contractual cost management mode, how to determine and assess the contracting cost indicators has become the key issue of contractual cost management. The paper summarizes the practical experience of implementing contractual cost management in Chengjiao Coal Mine. Firstly, it explains the process of setting the overall target of contractual cost management and how to decompose the overall target into various contracting cost indicators and divide them into the responsible subject such as professional systems and functional departments; secondly, it introduces in detail the process and division of labor of cost benchmarking assessment in contractual cost management and explains how to implement contractual salary cashing based on contractual cost assessment results. Finally, it discusses the safeguards for the implementation of contractual cost management. The effective implementation of the contractual cost management index determination and assessment system of the Chengjiao Coal Mine has stimulated the active participation of each responsible body in cost management, and provided valuable practical experience for the cost control of coal enterprises.