Research On Cost Management Of Project Manufacturing

The key of competition among enterprises lies in product price and time to delivery. How to quickly response to customers' requirements and manufacture products satisfying customers at low cost is the key factor of winning the competition. Project manufacturing is driven by customer orders and the corresponding production is also driven by them. Cost control in project manufacturing is particularly important due to the facts of the great difficulty in cost control and of commpn phenomena of actual cost excelling original budget. There are many factors in project manufacturing behinds these facts, such as low repetition of products, heavy design workload for product customization, long production preparation cycle and many unpredictable factors in manufacturing process, etc. Based on the analysis of the characteristics of production and cost management under current situations of project manufacturing enterprises in China, this article makes a research on cost management of project manufacturing from three aspects, that is, information technology, quality cost and virtual enterprise.1. On the basis of information technology, characteristics of production and cost management in project manufacturing enterprises and existing problems in production management are analyzed. According to the needs of production management in project manufacturing, the Enterprise Resource Planning (ERP) functions are redesigned, and a project manufacturing ERP function model is presented which is cost and time to delivery control centered and agile manufacturing oriented. In order to meet the needs of financial cost management of project manufacturing, an information integration based financial subsystem function model of ERP is put forward. This article explores parameters setting methods of financial integration, business processing methods of accounting integration and cost accounting methods, puts forwards an objective cost management method in ERP under the environment of project manufacturing.2. On the basis of six sigma quality management, the limitations of traditional quality cost theory are analyzed. By applying life cycle analysis methods, this article analyses quality loss and quality income from the angles of manufacturer, customer and society respectively. By introducing quality income and calculating quality profits and loss, the article helps perfect the quality cost theory. It is argued that in order to meet theIIbenefits of both customer and enterprise, a rational degree of project manufacturing quality should be hold. Lowering life cycle cost of a project and increasing quality income of both customer and society is an important mission of quality management.3. Based on the analysis of economy essence, this article indicates that establishing virtual enterprise and implementing virtual management is an effective way to improve the project quality, shorten project period of time and reduce project cost. A virtual management scheme of project manufacturing is proposed, which is based on the management style of OEM, CM and ODM. On the basis of analyzing the characteristics of project manufacturing cost management of virtual enterprise, this article explores the methods of project manufacturing cost management of virtual enterprise, and for the first time adopts strategic cost driver analysis, value chain analysis and strategic positioning analysis during the process of project manufacturing virtual enterprise establishment and partners' selection.4. Based on two project manufacturing enterprises, a demonstration analysis of cost management is presented.