Application And Study On Cost Control For Product RD Project

Taking the cost as a part of core competitive power of an enterprise, it is the necessary ability for the enterprise's survival development. Usually, the enterprise calculates the product cost which is mainly referred to the production cost (including material cost, labor cost and factory expense), the management cost and the sales cost and so on. Based on the material cost and the labor cost, the enterprise assigns the manufacturing expense and other expense according to the product types, and then each product cost is obtained. Whenever people mention the cost control, they will think about enhancing the shop floor management, reducing the material and energy consumption, and improving the production efficiency. However they always neglect the cost control in design stage of product research and development .The design cost is actually a cost that has the meaning of decision-making. Most of the enterprises don't understand the importance of design cost, so they are seldom to control the design cost. Besides the batch and the monopoly factors, once a product design is determined and put into production, the product basically determines the cost benefit influence on the value of both the enterprise and the customer. The congenital deficiency of the product performance and its economical property caused by unreasonable design couldn't be overcome through the cost control measures in the production process. Also, when the product design is finished, then if one wants to use the value analysis, it would be too late. Therefore, to take the cost control of the R&D process as the beginning of entire product cost control, and to carry on the effective estimate and forecast in the design process, will be a very important key point for improving the market competitive power.The cost control means that the enterprise should calculate, check and monitor all items covered in cost composition according to the determined cost target. The enterprise also should adopt the efficient measures, correct disadvantageous difference and develop advantageous difference, in order to limit the cost within the pre-determined target region. This thesis starts from studying the control of each cost of a new product during its research and development, discusses how to optimize the research and development process and to increase the product value based on the control of the research and development cost so as to obtain tech-economical reasonability and high efficiency. At the same time, a new product research and development cost control model is proposed. This is the creative spot of this thesis. The model has been used in S company with a new product research and development project and the result has proved its validity.