FEATURES OF USING A BALANCED SCORECARD IN THE COST MANAGEMENT OF ECONOMIC AND ENGINEERING SERVICES OF ENTERPRISES

Abstract

The article is devoted to the study of problems of effective cost management of economic and engineering services of the enterprise. Improving the planning of the activities of functional and supporting divisions of the enterprise (departments of engineering preparation of production, economic departments, divisions of the plant infrastructure) based on the use of a balanced scorecard (BSC) and targeted budgeting of their activities leads to significant savings in overhead costs at the enterprise. When the enterprise starts planning the financing of work and activities to achieve certain goals of the enterprise, and it also carries out the fixation of specific work for certain divisions, then the problem of imbalanced workload invariably arises, both in time and in labor intensity of work. This situation is a consequence of the need to adapt the enterprise to dynamically changing market conditions. Thus, a management problem arises at the enterprise – how to effectively manage the costs of the economic and engineering services of the enterprise. Based on the results of study, it was found that in order to distribute limited resources of enterprises among the many possible alternatives in effective way, it is necessary to apply a balanced scorecard. The balanced scorecard of the enterprise sets priorities for the entire enterprise, which, based on the cascading of the plant’s balanced scorecard, are reaching to each employee with the help of key goals and indicators. Departments, divisions and individual workers create scorecards that demonstrate how they can affect top-level goals and indicate specific monitoring indicators they will be tracking. Scorecards contain both the norms required to achieve significant results and the specific initiatives that ensure that those norms are met. The authors state that each initiative should have an economic evaluation that describes the impact of the initiative on the strategic goal, as well as specified costs, deadlines, resources and dependence. The description of the initiatives should clearly indicate the required resources (operating costs and investments required to implement them). It was proposed to carry out a clear target planning of both tasks for functional and supporting divisions, and the resources necessary for this. The implementation of the BSC system at the enterprise will significantly reduce a length and labor intensity of an entire cycle of strategic and operational work planning of economic and engineering services of the enterprise.