Research On Project Cost Management Improvement Of New Products In CB Company

With the development of the society and the improvement of people’s living standard,people pay more and more attention to health,and outdoor sports are becoming more and more popular,especially in Europe and America where people especially love outdoor sports.And the demand for outdoor sports products is also getting wider and wider.Along with the market demands,each company develops different outdoor sports products more and more widely,the competition also follows more and more intense.Besides the function appearance innovation competition,the price is also a very important competition factor.However,for CB company of outdoor sports products,although it keeps up with the pace of market innovation,the price of new products on the market is always high.Therefore,in order to stand firm in the market and gain more competitive advantages,the effective management and improvement of new products cost is very critical.CB company’s development strategic is designing inside the company,but producing in the suppliers.The key point for the products cost management improvement is to manage and control the research and development cost.Product design and development is the starting point of the whole production operations,Research and development cost occupies the main part of the entire product life cycle cost,once the research and development process is completed,the relevant material,mold,workers and equipment are basically finalized.Therefore,the management of the cost for product development is the most important part of the overall product operation cost management.Especially for CB,a company whose production is completely outsourced.Through in-depth analysis and research of CB company,this paper summarizes the problems of CB company like the cycle of new product research and development is too long;the communication and ability issues in the whole project process;and the insufficient of cost evaluation of research and development during the process-frequent changes in design,the lack of sufficient evaluation of the materials and tooling that needed for the product,the lack of sufficient consideration of the process methods and so on.Then further study these problems and find out the causes,including the unreasonable way of product development;Communication in research and development process is not efficient and too much time is wasted on communication;Do not pay attention to control the investment of research and development cost,which leads to a large increase in tooling cost;The consciousness of cost control is weak,and the resources that the product development needs can not be controlled at cost;And the inadequate cooperation and management with suppliers in the process of research and development.Combined with my own work experience,And review a big quantity of related product cost management literature,using the theory methods such as target cost management,value engineering,EVMS and Concurrent Engineering to improve the way of products development design,to improve communication efficient and control the investment of research and development cost,utilize the resources and control the project implementation.And then shorten the research and development cycle time,reduce the research and development cost under the current resources of suppliers,workers and equipment,then improve the competitiveness of the company.