Research On Cost Management Of Propane Dehydrogenation Project In Yantai W Company

Cost management of a modern project is wide-ranging, existing in the whole process of the project and in every aspect of the project management. The maximum of the project value and the minimum of the project cost are achieved by means of a cost management plan, cost estimation, cost budget and cost control of the project, etc. Moreover, cost management is the core and the most critical part of the project management, the central task and activity of modern project management and an important mark to measure the success of a project.Yantai Wcompany is a state-owned chemical enterprise with independent intellectual property rights and core technology. To enhance its global competitiveness and improve its industrial chain, the company plans to invest in the construction of a set of advanced Propane dehydrogenation to propylene device with a single set of production capacity largest in the world.This essay takes Yantai Wcompany’s propane dehydrogenation project as its research object. By adopting the theories and methods of project cost management, the paper studies the project’s organization structure, work breakdown structure (WBS), cost structure, cost estimate and cost budget, scientific formulation of a cost target and cost control measures from the various stages of the project’s decision-making, survey and design, equipment and material procurement, construction bidding, installation and commissioning. The research especially focuses on cost management in the stages of the project’s decision making, bidding and construction because it is key to controlling cost in various stages and links of the project constructionand effectively reducing the construction cost of the project investment by whichthe company can ensure its economic benefits, enhance its competitivenessand win a leading position in the future market.