Research On New Product R&d Cost Sharing Decision Making In Company V

During the new vehicle developing,vehicle OEM subcontract the component development to Tier1 due to its limited resources,different professional direction and short project time,which suppliers must be with development qualification and experience.Because of the specificity and complexity of the products,the R&D cost generated during the new product developing period needs to be shared by the OEM.The R&D investment amount is roughly 80% of total project investment amount,which impact the project profit and company operation.The R&D cost payment strategy from customer are mainly include: the amortization of sales volume,cash payment according to progress and partial amortization plus partial cash payment.In the past years,many projects of V company R&D cost can not be paid back by lifecycle sales volume amortization due to customer sales volume drop,while other project keep profit with cash payment of R&D cost from customer,so it is necessary to set up the R&D cost sharing decision making to judge the situation of cash payment and amortization in new project.This paper deeply analyzes the structure of R&D cost,and the impact on project profitability and the main factors to do the decision-making of R&D cost sharing.On this basis,qualitative analysis flow chart was set up to judge the situation of cash payment and amortization in new project.In the complex project case,qualitative analsysis can not get the final decision,furthermore,a quantitative analysis model is established by set up a target function of NPV and construct the constrain function of IRR and R&D ratio in total investment which is used to calculate the economic sales volume.When economic sales volume larger than discounted customer forecast sales volume,the decision is to ask for cash payment from customer for R&D cost,and the minimum cash amount could be from new NPV calculation through discounted customer sales volume.When economic sales volume equal to discounted customer forecast sales volume,the decision is to ask for cash payment or accept amortization,which can be decided by competition situation.When economic sales volume smaller than discounted customer forecast sales volume,the decision is to accept amortization.It is expected that the decision-making mode can make a quick decision by qualitative and quantitative analysis and help the enterprise to achieve the purpose of reasonable screening of high-quality business to save quotation cost and bring cash flow,and provide reference and guide for company operational management and new project decision.