Optimization strategy of breeding cost budget, refined management, and improvement of economic benef

Mondo Finance Updated on 2024-02-28

Pig breeding is the basic industry of China's national economy, and enterprises in this industry play an important role in stabilizing production and supply, but in recent years, the development of pig breeding enterprises has been in dire straitsThe severe external environment and the specific cyclicality of the industry make all enterprises face a difficult situation.

The comprehensive budget management tool plays a pivotal role in how pig breeding enterprises survive under the complex and changeable environmental impact of internal and external environments, but the implementation of the tool is not effective due to the particularity of the industry.

If the accuracy of the pig budget is low due to the impact of the market, the mismatch between the pig production cycle and the budget cycle leads to the poor implementation and analysis of the pig slaughter cost budget.

The pig breeding industry is particularly special, its assets are living creatures, and in recent years, under the influence of the external environment, industry enterprises are facing the problem of "how to survive", and urgently need a set of scientific and reasonable comprehensive budget management system to survive the winter of the industry.

Therefore, how to use comprehensive budget management tools to control and allocate limited economic resources of enterprises has become the key to the survival and development of enterprises.

Budget management is a set of management methods for enterprise operation and management, and is an indispensable starting point for enterprise production and operation management.

At the end of each year, enterprises first review the implementation of this year's strategic objectives, and formulate strategic objectives for the coming year based on external competitor information and macroeconomic information.

Through the analysis of strategic objectives, formulate a plan for the resources that need to be invested, including personnel, finance, materials, etc.

Through the tracking and supervision of the progress of these resource investments, we can analyze whether the implementation is consistent with the strategy formulated at the beginning of the year, and whether there is a deviation.

The analysis and feedback of the implementation of the budget can guide the daily operation of the enterprise, such as whether the recent cost control is effective, whether the revenue achievement rate is up to standard, whether there are potential operational risks and financial risks, etc., and the budget implementation review and performance appraisal at the end of each month and the end of the yearAble to summarize the current year's business situation and guide the action plan for the coming year.

The comprehensive management method of budget management has a clear direction for enterprise management, so that enterprises can grasp the main line of operation, carry out full management, dynamic management, and process management, so as to consolidate the business development chassis of the enterprise, so as to promote the overall realization of the strategic objectives of the enterprise. The characteristics of a comprehensive budget include strategic, systematic, dynamic and comprehensive.

Strategically, the company's strategy and vision need to be achieved through a holistic approach to budget management. In the budgeting stage, the strategic objectives of the enterprise are decomposed and quantified layer by layer, so that the macro strategic objectives are transformed into practical action plans.

That is, the overall budget management has the characteristics of strategic orientation, and the strategic direction of the enterprise is the goal of budget management, and the two are organically combinedThis is also an inevitable trend in the development of enterprise budget management control.

The comprehensive budget management method is a set of systematic system management methods, which has built a basic management method for enterprises to control centrally, first of all, to carry out the transformation and decomposition of the target with strategic objectives as the main line, and solve the problem of what enterprises will do this year.

Then there is the follow-up continuous budget implementation, analysis, control, feedback, etc., which provides solutions for how to do the enterprise, and dynamically feeds back the operating status of the enterprise, which involves enterprise cost control, internal control, risk control, etc., and strings together the content of each module for systematic controlIt can optimize and improve the management efficiency and management effectiveness of the entire organization.

Finally, according to the actual implementation results, the performance appraisal system is continuously revised and optimized to ensure the rationality of the appraisal system, so that all levels complement each other, and finally transform into the specific implementation of the corporate strategy.

That is, the comprehensive budget management system integrates the content of each module of enterprise management, and has the functions of control, incentive, evaluation, etc., which can thoroughly implement the strategic policy of the enterprise, realize the function of integrated management control, and realize the strategic mission of the enterprise.

In order to solve the problem of difficulty in comparing and analyzing the budget and the actual number of slaughter costs, on the other hand, because 2022 is a very critical year for case enterprises, the project companies have basically entered the operation stageIt is in the period of full load equilibrium production

The number of pigs slaughtered will rise sharply, but the pig market continues to be sluggish, in order to complete the goal of cost reduction, the accuracy and rationality of the company's target slaughter cost budget need to be optimized and improved.

The target slaughter cost of fattening pigs is composed of two stages of cost, namely the cost of weaning piglets and the cost of nursery and fattening stage, and the cost of the two stages is combined to form the cost of slaughtering pigs, and the division of the two stages is matched with the production stage of pigs.

The starting point of cost calculation is the fertilization stage of fertile sows, when the fertilization begins successfully, the costs of feed, medicine, labor, water and electricity, testing fees, depreciation and other expenses consumed by fertile sows constitute the birth cost of weaned piglets.

The cost of being able to reproduce sows during the farrowing period is also the cost of the weaning piglet stage, after the piglets are weaned and transferred to the nursery and fattening house, the weaned piglets consumed in the feeding stage of the nursery fattening feed, related drugs and vaccines, direct labor, power energy, depreciation and other expenses constitute the production cost of the stage, and the continuous production stage is up to 10 monthsThe total production cost of the two stages constitutes the cost base for calculating the cost of slaughtering pigs.

From the above-mentioned description of the two stages of the cost of slaughtering pigs, it can be seen that the cost elements involved in the pig breeding process mainly include: direct materials, direct labor, and agricultural manufacturing costs. Direct materials include two main cost elements: feed, drugs and vaccines, of which the feed cost element accounts for more than 60% of the cost per kilogram of pigs.

Direct labor is the basic salary, social security provident fund, bonus and other labor costs of the front-line breeding personnel of each branch breeding unit, which is directly related to the cost of the beneficiary.

Agricultural manufacturing expenses are indirect costs, including depreciation of fixed assets, depreciation of breeding pigs, maintenance costs, laboratory testing costs, and consumption of machine materials.

The refined management of the budget can enable the operator to monitor the operation of the enterprise from an all-round perspective, better grasp the business rhythm of the enterprise, and improve the enthusiasm of all members to participate in the budget managementIt is conducive to all-round integration with operation, production and operation fine management

The reference points are mainly reflected in the following points: extending the organizational level of budget management to match the level of operation management.

In the case, the enterprise actively optimizes the organizational level of budget management, combines the actual operation and management level of the enterprise, comprehensively considers the cost-effectiveness of management, extends the budget management organization level to the four-level unit, and includes the front-line business personnel in the budget management level, which improves the participation of all members, strengthens the budget thinking of employees, and can also ensure the effective implementation of the budget from the organizational structure and ensure the refined management of the budget work.

The content of budget control is more comprehensive, and the granularity level of budget preparation is drilled deeper. The case enterprise optimizes and expands the budget control content according to the actual situation of the enterprise, increases the feed quantity control budget and the full-cycle capital budget of the construction project in the budget preparation content, strengthens the monitoring of the number of key cost items of the enterprise, consolidates the basic content of budget preparation, and lays a solid foundation for the process control of the budget.

The budget preparation level drills down to the sub-field level and matches the organizational management structure, which can improve the refinement of budget management, facilitate the analysis of implementation differences in the follow-up budget implementation work, shorten the time for analyzing the causes of differences, provide corrective measures for business operations in a timely manner, and cover a wider range of budget assessment indicators.

The case company further refined the budget assessment indicators, covering business and financial indicators, and increased the assessment of key work of the target category, so as to strengthen the understanding of the budget of all employees and improve the attitude of employees towards workStrengthen the communication between various organizational departments horizontally, and jointly provide suggestions and suggestions around the business objectives of the enterprise.

The optimization of overall budget management needs to be combined with the actual business situation, otherwise it can only be talked about on paper, and the optimization content cannot be implemented.

In the case case, the company fully integrated the actual situation when optimizing the budget management content, which includes not only the company's own business but also the external situation.

For example, the pig market of the case enterprise is greatly affected by the cyclical factors of the industry and cannot make an accurate decision on the pig marketIt can make up for the shortcomings of complex budget preparation and poor timeliness of response to changes, and can provide an important reference for budget adjustment.

The budget management of pig breeding enterprises is affected by the nature of their own industry, and the comprehensive level of budget management personnel of enterprises is relatively high.

Budget management personnel not only need to have a solid professional level of budget management, but also need to have a deep understanding and understanding of the pig breeding business, the output, implementation, control and other contents of the budget are ultimately to serve the business, help the business to solve problems, timely correction of business problems, and find opportunities for business improvement.

Due to the fact that the case enterprise has just transformed into the pig breeding industry, most of its budget management personnel have no work experience in the industry, and their understanding of the industry is not very deep, resulting in the monthly budget implementation analysis can only provide data, unable to feedback analysis suggestions, and the work stays on the surfaceThis poses a great hidden danger to the process control and implementation in budget management.

Comprehensively analyze the stage and actual situation of the enterprise, and put forward the following two suggestions: First, organize and carry out more targeted training.

Regularly invite industry experts to conduct on-site face-to-face training to deepen their understanding of the industry's business, and at the same time regularly train on the latest development trends in budget management to improve the overall level of enterprise budget management.

Go to the business site to learn about the business. Regularly organize personnel to go to the front-line breeding base to learn the business, communicate with the front-line breeding personnel, understand the pain points of business management, and make the site have a soul.

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