Jiangsu Fujitsu Switch Communication Power Localization Project Cost Management

Jiangsu Fujitsu Telecommunications Technology Co., Ltd is a China-Japan joint venture, founded in Suzhou in 1994, products and sales F-150 programmed-controlled telephone switching mainly, the main customers are China Telecom, China Netcom, part products are also sold to foreign telecom operators. Japan Fujitsu design F-150 products initially and enter the Chinese switching market first. The F-150 products have high reliability, but most components of it are imported, so the price of F-150 is higher than others. In order to adapt competition of market, how to reduce the cost is becoming primary task of the enterprise, of course the same product quality is need to be guaranteed. Therefore, good controls of cost management in the localization project become the important methods to reduce cost and gain more profits for the enterprise.The article bases on the cost management theory and methods, combining the fact of telecommunication power unit localization project in Jiangsu Fujitsu, and analyzes the current situation and problems of cost management and control in this project. According to the result of analyzing, proposals and suggestions are brought out for the process of the project.The article reviews the related theory of cost management of project systemically, summarizes the main methods of cost management of project, and comments the current situation of cost management of project.The main researching contents in the article include: First, it analyzes the current situation of cost management of power unit project in Jiangsu Fujitsu, and analyzes the operating background of this project and key elements of this project systematically. Secondly, it analyzes the relationship between the cost control and the plan control in power unit project by budget analysis and earned value analysis method. Finally, the article bring out the solution to cost improvement and optimization, proves that the enterprise can control project cost by the methods of cost avoidance, the process optimization and the budget control of project, so that the achievement of project development can be gotten.Localization projects are the trial creative activities in Jiangsu Fujitsu, they have got certain achievements on aspects of reducing cost of development and improved the cost management of project. But there are still some problems on how to combine cost management to project management well. I expect to get the experiences from this research and give some supports for future project development and research.