Study On Project Cost Management Of Healthcare Key Accounts In Leoni Special Cables

Since the Reform and Opening-up in China, the economy has been developeddramatically. People’s living standard has been improving and the consumption moves intoa different stage, which includes the demand of more advanced healthcare environment.China’s manufacturing power and huge market have attracted international medical devicemanufacturers to make the investment here. They have started in the early stage to set upfactories and sales centers. Nowadays the R&D centers are located in China for certaintypes of medical devices. There are more and more competitions for those medicalequipments producers in this land. There are two major focuses for these big medicaldevice players in the market: technology and cost. As the key component supplier, Leonitakes the pressure naturally transferred to them from the customers.Leoni is a German company producing cables and harness. There are92factoriesworldwide, and7are located in China. The main customers of Leoni Special Cables arefrom automation, healthcare and telecommunication industry. Leoni has followed the stepof its healthcare key account Siemens to move the production of medical harness to Chinain2004in order to serve the customer better. With the German background, Leoni has thestrength regarding the technology and quality. However, how to manage the project cost,therefore to make the best out of the resource advantages of technology, supplier chain andcustomer service, is the issue that the company needs to solve urgently in order tocontinuously win customers’ projects and complete them successfully with high qualityperformance and low cost.I have joined Leoni for more than ten years and have participated in the work ofmedical harness project cost management as the healthcare key accounts sales management.The paper analyses the current project cost situation in Leoni. It applies the theories ofproject cost management, studies the existing problems, analyses the root causes andprovides the possible solutions. Furthermore, it explains the necessity and feasibility forLeoni to improve the project cost management strategies. In the end, it takes Siemens MRproject as the application to illustrate the actual result of the project cost management. The study result of this paper can be a reference to the cost management of othersimilar projects in Leoni. It also can be taken to develop new customers for Leoni. It hasthe value of reference for the other companies in the similar industries for their project costmanagement.