Cost Management Research Of Wind Pitch Signal Slip Ring R&D Project

With the successful ending of the "12th Five Year Plan", the new "13th Five Year Plan" has begun. Review the past five years, China's wind power industry continues to maintain strong momentum of development, China's wind power total grid installed capacity reached 129 million kilowatts, China's wind power total grid installed capacity ranked first in the world for three consecutive years, and become the first country in the world whose wind power total gird installed capacity reached 100 million kilowatts. Meantime wind power has become the third power type which reached 100 million kilowatts gross installed capacity after thermal power and hydropower in China. In the new five years plan the state will vigorously develop the new energy industry such as wind power and solar photovoltaic power. Under the support of the good policy of the government, China's wind power industry will sustain rapid development for quite a long in the future, also focus on resolving the problems existing in the development of the wind power industry.China's wind power industry continued rapid development, at the same time, China's wind power industry experienced profound changes. These changes deeply affected M company who acts as downstream supplier of wind turbine manufacturers.At the beginning of 2013, M company, a subsidiary of Morgan group, established its slip ring business unit, aiming at developing customized products for end users in the Chinese wind industry, and at the same time providing customers with more timely and excellent after-sales service. However, after the rapid development of China's wind power industry in recent years, M company's slip ring business met some unprecedented challenges.This paper will firstly introduce the pitch slip ring industry, and briefly analyze enormous challenges which the current market status of the pitch signal slip ring industry brought to M company's slip ring BU. In order to respond positively to the new market situation, M company's slip ring BU timely introduced the concept of cost management, in order to cope with the increasingly fierce competition in the market. In the beginning of 2015, M company's slip ring BU decided to develop its first standard product which is specially designed for Chinese wind market, but what everyone can't think of is, in the R&D stage M company found that the cost of its new slip ring product is too high to meet the competitive requirement of the Chinese wind market. By analyzing the cost and specified cost management plan, M company successfully reduced cost, and won customer's approval. This paper will review the whole cost management process of M company's new pitch signal slip ring product, and summarize the experience and lessons, explore the cost management system which is suitable for new slip ring R&D project, and prospect application of cost management system to all the new product development projects in the future.