Application&Research Of Life Cycle Costing Management In The Vehicle Wire Harness Project Development

By the rapid development of science and the advanced living condition demand of people as well as the stricter requirement to the supplier by rising of customer, enterprise are facing giant challenge in the current. Meanwhile, the production management methods of modern enterprise emerged in an endless stream, cost management plays a more and more important role for the enterprises, and the traditional cost control methods have many drawbacks. So, a series of new cost management methods are on show. This paper put forward systematically a new cost management based on the production life cycle in the wire harness made enterprises which are different from traditional. The cost control methods in product’s design, production, marketing and after sale stage were studies in the new cost management system.The paper based on the theory of project cost management in10knowledge area of PMPOK, mainly discuss the function of project costing management in the project life cycle development. The project life cycle in this paper mainly focus on the single product-vehicle harness product. As well, the paper study and implement cost management in the product’s design, production, marketing and after sale phases through the method and tools of project management theory. By studying and applying, comes to the conclusion that emphases in the product’s design stage should design product’s function and corresponding cost through discussing application of target costing and value engineering in product’s design phase. It is important that the enterprise should identify rationality of the function and necessity of cost rather than to control design fees. The study shows that the enterprise should adopt ABC costing in the product’s production phase that break the traditional product process and overhead pool become more and more accurate in order to achieve a better control cost. The marketing and after sale are in the final stages of the product life cycle, but their cost management are very critical in relation to enterprise’s economic and social benefit also for the long-term development of enterprise.Finally, the paper make theoretical analysis and practical summary respectively for A wire harness project of B company’s cost management from the angel of project life cycle costing management. At the same time, the paper confirms advantages and characteristics of A wire harness project’s cost management while finding problems and inadequacies of B company’s cost management. The paper also puts forward countermeasure and suggestion to the question existing to product’s life cycle cost control in order to play a certain role for the development of B company.