Study On Cost Management Of Automoble A/c Compressor Development Project

Nowadays, project development timing becomes shorter and shorter. The technologies become more and more complicated. Traditional cost management has not been able to provide timely, accurate and effective cost information, which can not satisfy the needs of enterprises. Therefore, project cost management has been gradually playing an important role in the living and developing of enterprises.This paper aims at project cost management of companies in automobile industry. It starts with the theories of product breakdown structure (PBS), organizational breakdown structure (OBS) and work breakdown structure (WBS). It studies their applications in project management and the feasibility of their combination.Then, the theories of activities based cost (ABC) and process based cost modeling (PBCM) are introduced and studied the applications in cost management. They are combined with work breakdown structure (WBS).After that, the five theories are combined together and a project cost plan model is established.In the end, based on the project cost plan model, the theory of value engineering (VE) is introduced to take the control of project cost. Furthermore, a process is set up to control the project cost.This paper has developed a systemic project cost management method and a control process for companies in automobile industry. The author hopes that they could be referenced by the companies and that they could contribute to the improvement of cost management.