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Conceptual Provisions on the Directions of Cost Optimization of Energy Industry Enterprises

Journal: Quarterly Scientific Journal "Economic Herald of the Donbas" (Vol.65, No. 3)

Publication Date:

Authors : ;

Page : 253-261

Keywords : enterprise costs; suboptimal costs; diagnostics of suboptimal costs; cost optimization; portfolio of projects; control of project implementation; power engineering companies;

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Conceptual provisions on the directions of cost optimization of energy industry enterprises on the basis of system, information and project approaches are proposed, which provide for the implementation of procedures for diagnosis and optimization of suboptimal costs and control of the implementation of relevant projects. Diagnosis of suboptimal costs of energy companies is proposed to be carried out using a comprehensive approach to the diagnosis of suboptimal costs based on a combination of information-logical, descriptive-analytical and economic-mathematical models of enterprise analysis, as well as full analysis (vertical and horizontal) of financial statements including P&L, analysis of Cash Flow and financial balance of the enterprise. Applying the appropriate approach allows you to identify the costs that the company can optimize without affecting the quality of electricity and without violating other aspects of the company, which frees up the company to upgrade equipment, additional logistics, reduce electricity costs and implement other projects in within the portfolio. To optimize the costs of energy companies, an appropriate project-oriented approach is proposed, which is based on the use of the method of forming a portfolio of optimization projects using a combination of WSJF model and 6 sigma matrix. The uniqueness of the approach lies in the synergy of the proposed tools and methods and their implementation for energy companies. The proposed approach allows to form a portfolio of interconnected projects, which allows to achieve better financial results through synergies between projects and saves energy companies through more efficient use of its financial resources. Implementation of conceptual provisions on the areas of cost optimization of energy companies allows to reduce the cost of electricity, losses of enterprises and increase their profitability by reinvesting savings in cost optimization projects. Optimization is achieved by diagnosing those costs that can be reduced without affecting quality and in which it makes sense to invest from an economic point of view.

Last modified: 2022-01-11 19:57:09