Study On Cost Management Model For Material Of Shock Absorber Project

Since China is coming into global economic development step by step,Chinese local company currently not only need to face the competitiveness with companies abroad,but also the competitiveness of local companies.How to control the cost of products during project whole lifetime is very important.Currently,the cost management model in most manufactory companies is try to reduce the material cost of products,but this kind of continues reduction on the purchase price will cause the risk such as the vicious competition between suppliers,bad quality and logistic performance.All these will cause the cost increase in other aspects.Under current total competition environment,what useful to the development of manufactory companies is to find the reasonable method to evaluate and control the material cost of products.Here we investigate the method of project management and cost management,together with comparison of material cost management method in companies domestic and abroad,and also analysis the material cost components in company S.In additional,we use AHP to choose reasonable materials as the investigation object.And introduce Target cost method for material evaluation in the development of new projects.At the end,we will use Earned Value analysis method to control the material cost during whole project lifetime.