Project-based Manufacturing Cost Budget Management System

Albeit PDM (Product Data Management), project management software, and other IT approaches that support information engineering in project-based manufacturing has made much progress along with general development, integration and sharing remains the lasting topic in business informatization. In the project-based manufacturing that combines both project and plant management and features long production cycle, huge investment, progress-based revenue, tentative technical requirement and process, changeful designs as well as several projection bases, it is hard to rely on traditional management methods to estimate a proper budgetary cost, which helps in cost control, financial risk management, and the accounting of results of operations.In this article, the author starts with an introduction of design for cost and cost of quality theory, and the application of project management software and PDM in project cost budgeting. Later, he, in the context of Shanghai Zhenhua Port Machinery Co., Ltd. (ZPMC), analyzes the situation of budgetary control and cost/budgetary information engineering in a project-based manufacturer. He proposes Cost/Budgetary Control Center with basic and characteristic database and studies into the feasibility of cost/budgetary control along with standardized business management. He suggests efficient project management, project assessment, and the connection of cost data and WBS (Work Breakdown Structure) for budgetary targets; and also improved and itemized cost accounting/statistic system for data support.In the end, the author, considering making best of existing information system and based on project features, discusses the cost/budgetary management modules and a flexible information system based on the Uniform Materials Code, BOM (Bill of Material), and Uniform CBOM (Costing Bill Of Material).