Research On Cost Management Of P Auto Parts Development Project Of T Company

In today’s rapidly changing and globalized market economy environment,the competition in the automotive industry is becoming increasingly fierce,which also poses even greater challenges for automotive parts enterprises.As the continuous reduction of profits in the automotive parts industry,the intensified competition of similar product enterprises,together with the increase investment of new product development phase,the project cost management plays a significantly important role in the business management.It also becomes an important management part to improve the development strength and enhance the competitiveness of the enterprise.Starting from the basic theories of project cost management,this paper firstly introduces some commonly used methods and tools of project cost management,also introduces the features of automotive parts project development,which provides a basis for this study.Then the paper shows the research and analysis results of T Company’s development project cost management status and existing problems.From the perspectives of cost management planning,cost estimation,project budgeting,project cost control,the writer used the approaches of WBS,detailed cost estimation,target costing and EVA to develop a suitable improvement proposal for T Company’s project cost management.After that,the improvement proposal was implemented in P project and proved to have a good effect.The purpose of this paper is to let the managerial staffs in the automotive parts industry to systematically understand the cost management of development project.It also help them to use the thinking and methods of project cost management in the development phase of automotive parts.As the result,the project cost can be totally under control in all phases and in whole processes by all staffs of development team from the beginning of a project.Once the project cost abnormal conditions occur,project manager can use the cost management tools for analyzing issues and making action plans.It is expected that the study can provide an important references for the cost management of other similar automotive parts of development projects.