Federal State Budget Educational Institution of Higher Education, Industrial University of Tyumen, 625000, Tyumen, Volodarskogo St., 38, Russian FederationAyapbergen Taubayev
Karaganda Economic University of Kazpotrebsoyuz, 100009, Karaganda, Akademicheskaya St., 9, Russian FederationOlga Viktorovna Lenkova
Federal State Budget Educational Institution of Higher Education, Industrial University of Tyumen, 625000, Tyumen, Volodarskogo St., 38, Russian Federation
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The importance of controlling in modern conditions is defined. A brief overview of the main evolutionary stages in the development of the theory and methodology of controlling is provided. The expediency of projection of the concept of controlling on the cost management system at the gas transportation enterprise is justified. The paper points at the grouping of controlling methods in general scientific methods, methods of a number of individual sciences, and specific methods, which are offered to divide into general management methods and methods of cost controlling. The author’s systematization of enterprise-wide management tools of controlling is provided, depending on the most significant areas of activity of the enterprise, management functions, levels of the management hierarchy and the nature of implemented targeted enterprise systems. The cost management methods are structured by management functions and stages of production and sales. The authors point at the predominant classification of each method into strategic and operational tools. The recommendations for further practical use of the presented systematization are provided.
Controlling; Costs; Gas Transportation Enterprise
At the moment, a lot of efforts of the foreign and domestic experts [1-3] are focused on the development and improvement of a system of controlling. Controlling has become extremely popular with the owners and managers of enterprises focused on the long-term success, as it offers the information and analytical support to management in the turbulent state of the economic environment. In addition, the interest in this phenomenon is caused by the ability of the system of controlling to timely identify "weak signals" from the internal and external processes, analyze them and develop measures for the company adaptation to future changes, thus protecting it from possible losses and negative consequences.
If we turn to the development of the controlling concept in Russia, it would be desirable to note that the cost initially acted as the object of controlling. However, the controlling was initially understood only as cost accounting . In the evolution of the concept of controlling, the variety of functions gradually expanded. At a certain stage of development, costs were no longer the sole object of controlling, and now, as mentioned above, the management theory is dominated by the theory according to which controlling is management of control. In this case, notably, the cost management system as a whole virtually was not considered as the object of controlling. The cost controlling is defined as its specific element only in the latter of the presented classification tables. But according to the position of the authors of this approach, they understood cost controlling only as accounting and control functions.
Another interesting fact is that the types of controlling are distinguished in the scientific literature depending on the activities of the organization, but the authors of this typology confined to division into controlling in commercial organizations and controlling in commercial banks only, while the features of the internal structure of the company and the particular conditions of its functioning are not taken into account.
The authors also believe that due to a high degree of importance of the cost in the activities of the gas transportation organizations  and the above-mentioned properties and capacities of controlling, it is advisable to project the concept of controlling on the cost management system of the gas transportation enterprises. To do this, the cost controlling must be considered as a separate category representing a holistic, comprehensive, integrated system (concept) based on a synthesis of management tools and methods that promote cost efficiency and, consequently, ensure flexibility and sustainability of the company in general.
In this case, the proposed subsystem of the cost controlling must be filled with the appropriate management tools structured by levels of the management hierarchy, functional areas and the nature of targets (operational or strategic).
The goals and objectives of cost controlling are achieved through the implementation of specific methods and tools  that ensure timely control, coordination and regulation of activities of a gas transportation enterprise, as well as allow to shorten the response time of the economic mechanism to the change of internal and external environment, reduce administrative risks of mistake in selecting a vector of the administrative impact. Currently, there are many methods of controlling [7-10], which generally can be divided into the following groups:
1. group of the controlling methods – general science: observation, comparison, analysis, synthesis, systemization, identification of patterns, forecasting, etc.
2. group of the controlling methods of a number of individual sciences, which use planning, accounting, analysis, etc.
3. group of the controlling methods – specific, which can be divided into general management methods and methods of cost controlling.
In this case, the selection and practical implementation of the tools appropriate for the conditions of functioning of a particular enterprise are often complex. In order to facilitate this choice, methodical approaches to the construction, filling and implementation of the controlling system can be grouped according to the most significant areas of activity of the enterprise or managerial functions. In addition, the existing methodological tools can be systematized through the levels of administrative hierarchy and nature of the implemented targets of the enterprise. These two criteria make it possible to identify the nature of the system of controlling implemented by the organization: operational or strategic. The author’s systematization of the tools of corporate controlling of commercial structures is shown in Table 1.
|Function||Methods, techniques, tools||Management level||Can be used in cost controlling|
|JSC (holding)||LTD||Line level|
|Goal-setting||- analysis of the existing system of the company objectives and strategies to achieve them; comparative analysis of the missions and goals of the organization and its competitors;||s||-||-||With regard to goals in costs|
|- "tree of objectives";||s||s||-|
|- SMART method;||s||s||o|
|- modeling of production and economic system; simulation models;||s||s||o||With regard to the cost management system|
|- construction of the scenarios of development;||s||s||-||+|
|- time series analysis, extrapolation of trends;||s||o||o||+|
|- methods of expert estimations, "Delphi" method, brainstorming;||s||s||-||+|
|- Ishikawa diagram (for the construction of the goals structure on the basis of the identified problems);||s||s||o||+|
|- GAP-analysis (analysis of strategic gaps);||s||s||-||+|
|- construction of mental maps;||s||-||-|
|- cognitive modeling||s||-||-|
|Analysis||- McKinsey "7S" model;||s||-||-|
|- product life cycle; technologies; organizations||s||s||-||+|
|- comparative analysis "goals – target – fact – optimization – deviation";||s||s/o||o||+|
|- SEC - selection of strategic economic centers;||s||-||-|
|- SNW analysis (identifying strengths and weaknesses);||s||s||-||+|
|- M. Porter's model of value chain;||s||s||s||+|
|- analysis of the functional areas (cuts) of the organization (marketing, finance, production, personnel, organizational culture);||s||s||s||+|
|- methods of sociometry;||s||s||-|
|- analysis of the structure of information and document flow;||s||s/o||o|
|- analysis of business processes;||s||o||o|
|- R. Ohmae's model of management analysis;||s||-||-|
|- PRaM-analysis (analysis of the parameters of the resource component and management in the organization);||-||o||-|
|- function value analysis;||-||o||o||+|
|- LOTS method of analysis;||s||-||-|
|- life cycle of the industry;||s||-||-|
|- analysis of "force fields" by I. Ansoff;||s||-||-|
|- STEP (PEST) analysis;||s||s||-|
|- study of reviews, newsletters, reports, systematic monitoring, analysis and statistical assessment, creation of scenarios;||s||s/o||o||+|
|- concept of driving forces;||s||-||-|
|- Porter's model of competitive forces ("competitive ring")||s||-||-|
|- map of strategic groups – display of various competitive positions of rival firms in the industry;||s||-||-|
|- analysis of key success factors (KSF);||s||s||-|
|- comparison of the value chain of the organization and competitors;||s||s||-||+|
|- position analysis; creation of a competitive profile;||s||-||-|
|- formation of the profile of the environment in the organization;||s||-||-|
|- analysis of the industry environment;||s||-||-|
|- method of calculation of the amount of coverage;||-||o||o||+|
|- analysis of bottlenecks;||-||o||o||+|
|- analysis of the volume of orders, areas of sale, discounts;||-||o||o||+|
|- variance analysis;||s||s/o||o||+|
|- ABC analysis;||s||s/o||o||+|
|- investment analysis;||s||s||-||+|
|- analysis of the risk of entrepreneurial activity;||s||s||-|
|- analysis of business processes;||s||s||s|
|- I. Ansoff's matrix "product/market";||s||-||-|
|- Thompson-Strickland's matrix;||s||-||-|
|- G. Steiner's model;||s||-||-|
|- D. Abel's model;||s||-||-|
|- M.I. Kruglov's model;||s||-||-|
|- comparison of growth rates and market share –BCG matrix;||s||-||-|
|- GE – McKinsey model (comparison of market attractiveness and competitiveness);||s||-||-|
|- Shell-DPM model (comparison of industry attractiveness);||s||-||-|
|- Hofer-Schendel model (analysis of the market evolution);||s||-||-|
|- ADL-LC model (analysis of the industry life cycle – competitive advantages);||s||-||-|
|- "BCG outsourcing matrix";||s||s||-|
|- P. Karalich's model of booking analysis;||s||-||-|
|- MCC matrix (mapping enterprise mission and core business competencies for compliance);||s||s||-|
|- Marakon Associates' matrix of profitability;||s||s||-|
|- Dibb-Simkin's model;||s||-||-|
|- PIMS model;||s||-||-|
|- business planning;||s||s||-|
|- methods of investment planning;||s||s||-|
|- Balanced Scorecard system and system of key performance indicators;||s||s||-|
|- methods of cost planning, pricing||-||s/o||o||+|
|- methods of network planning||-||o||o||+|
|- method of calculation of the amount of coverage;||-||o||o||+|
|Organization||- methods of organizational projecting:
-- methods of projecting works (original projecting, model projecting, computer-aided projecting)
- -projecting methods
|- methods of performing works||-||o||o|
|- reengineering, engineering, optimization of business processes||s||s||-|
Note: s: Strategic, o: Operational.
Table 1: Classification of the tools of controlling.
This table contains the systematization of the range of the basic controlling tools. This classification may be complemented by other methodological techniques. The authors do not claim the completeness of this set. In addition, the table shows the author's vision of the possibility of using individual controlling tools at different levels of the management hierarchy in such complex structures as a gas transportation holding company. In this case, the study of a large number of scientific and methodological sources gives an indication of the preferential nature of a certain tool (strategic or operational). As can be seen from the table, some tools can be used to make both strategic and operational decisions. Moreover, the last column of the table shows the possibility of the use or transformation of each of instructional techniques for cost management (controlling).
From the perspective of the author's logic, it is possible to consider the specific cost management methods in the course of the study (Table 2).
|Cost management method||Management functions|
|CVP analysis (cost–volume–profit analysis)||o/s||o/s|
|Function cost analysis||o/s||o/s||o/s||o/s||o/s|
|Simple method of cost planning and accounting||o||o|
|Custom cost accounting method||o|
|Process cost accounting method||o|
|Concentration cost accounting method||o|
|Standard method of cost planning and accounting||o||o|
|Analysis of the cost structure (vertical)||o/s|
|Horizontal (comparative) cost analysis||o/s|
|АВС and XYZ analysis||o/s|
|Cost summation method||o|
|Cost allocation method||o|
|Cost elimination method||o|
Note: s – strategic, o – operational
Table 2: Systematization of cost management methods by functions.
Analysis of the major cost management tools allows to say that there are complex technologies that allow to implement several management functions at the same time, while there are also narrowly focused ones. These tools can also be divided by the stages of production and sale of goods (works, services) (Table 3).
|Cost management method||Inventory||Production of goods, performance of works, provision of services||Goods delivery||Sale and marketing||Servicing|
|CVP analysis (cost–volume–profit analysis)||s||s||s||s||s|
|Function cost analysis||s/o||s/o||s/o||s/o||s/o|
|Value added chain||s||s||s||s||s|
|Standard method of cost planning and accounting||o||o||o||o||o|
|Analysis of the cost structure (vertical)||o||o||o||o||o|
|АВС and XYZ analysis||s/o||s/o||s/o||s/o||s/o|
Table 3: Systematization of cost management methods by stages of production and sale of goods (works, services).
Integration of the presented systematizations may allow to build a multidimensional structuring of management tools with subsequent superimposition on the added value chain of all levels and structure deepness, for example, by cost components. For example, it is possible to identify the most important elements of cost and types of work at the preliminary stage, and subsequently proceed with the search for reserves to enhance the cost-effectiveness in the context of management functions. It should again be noted that you should not entirely focus on the presented controlling tools, since they are not benchmark but still can serve as a basis for further development of a more detailed classification of methodological controlling tools.
The authors obtained a set of management controlling tools in the course of the study. At the same time, company-wide methodology and specific methods of cost controlling were considered separately. It was proposed to carry out a multidimensional structuring of the methods by management functions (goal-setting, analysis, planning, organization), by levels of management hierarchy (holding, joint-stock company as part of the holding, the linear production management – performance level). However, it is important to divide the considered tools into strategic and operational. It was suggested to base the classification of the cost controlling methods on the typology of cost management methods, which, in turn, are proposed to differentiate in the context of management functions (goal-setting, analysis, planning, control, motivation, accounting), as well as by the stages of production and sale of goods (works, services). The possibility of the complex use of the proposed arsenal of management tools was stated.
Consideration of the possibility of adaptation of the individual controlling tools to peculiarities of functioning of various industrial enterprises can be found in the writings of many domestic and foreign authors. This usually refers to company-wide controlling tools, while the authors propose the allocation of a separate subsystem – cost controlling – and its filling. Moreover, in recent years, the various studies have been devoted to the consideration of controlling procedures with respect to specific management functions [10-17]. Meanwhile, this paper attempts to consider the arsenal of management capacities of controlling systematically, from different points of view. Of course, the further specification, supplement of the methodological foundations of controlling, and their subsequent modification are possible. However, this will be a subject of further research by the authors.
The stated purpose of the study – the development of typologies of controlling tools in relation to the complex gas mainline enterprises – has been achieved. The observed variety of existing management tools, fragmentation of their use on industrial enterprises, and insufficiently full use of controlling capacities at the executive level led to conducting of multidimensional structuring of appropriate methodological tools by the object level of management impact, functional areas of management as part of strategic or operational goal-settings. The use of the formed set of tools will enhance the quality of decision-making (validity, timeliness, etc.) in the field of cost management.