Cost Control Of Auto Parts Project Of TT Company

The automobile industry is the crown of the national industry.In recent years,the development of the automobile industry has been paid more and more attention by the central and local governments at all levels,making it one of the important pillar industries of China's economic growth.With the further development of economy and the continuous improvement of national income level,China's automobile consumption market is growing.However,in the past 1-2 years,with the overall saturation of the automobile market in China,the growth rate of automobile production and sales has appeared increasingly slow signs.According to the Gasgoo Automobile Survey,sales growth in 2017 was sluggish as a result of the 2017 purchase tax credit that led to an early overdraft of some of the next year's demand at the end of 2016.2017 may become an important turning point,and micro growth has become a new normal for the development of China's passenger car market.In the auto industry,the new project is profitability,which is the foundation for the survival and development of enterprises.Therefore,all parts and components enterprises are aware of the cost control problem,which need for new automotive projects cost control,in order to achieve the company's expected profits.Due to the high profit of automobile parts in the early stage of industry development,the domestic automobile parts companies have not carried out strict cost management in the process of project implementation.In the process of project development,every expenditure has no accurate digital reflection and monitoring on the financial impact of the project.As a result,the finished product cost is often much higher than expected,with some items even slightly profitable or losing money.Therefore,cost control is urgently needed to ensure the company's expected profit.TT company is a wholly foreign owned auto parts company which came to Nanjing in 2007.The main products of the company are injection molded parts of automotive interior parts.The company has more than 400 employees.At present,the main customers are CJLR,VOLVO,GM,Mercedes-Benz,Geely,GM,Opel,Mazda and PSA.With the intensification of market competition,the company's profits continue to slide.The company already has its own cost control system,but there are still many places to improve and upgrade.This thesis analyzes some problems which existing in project cost control of TT company.From aspect of the financial planning for the project,the valuation of the project cost,The compilation of the project budget and the decomposition of the cost elements in the project cost,cost process control of projects.The optimization plan is given in terms of project quantity,postpartum final financial status and project budget comparison,and carry out actual verification in new projects.