Project Cost Management Of New Car Develop Project

Since the reform and opening up, China’s automobile industry has experienced rapid growth period. Domestic car consumption market is constantly expanding, and car production and sales rose steadily. But along with the market development, market competition is also increasing fiercely. Wars of sales price become inevitable trend of the domestic car market. In this case the lower profitability of domestic automobile enterprises has become the bottleneck for its development and survival. So good control of cost for new car model project, becomes the very important method to increase profit and to keep sustainable development. Process control and project management plays an important role in controlling the cost of new car project. The project cost is one of the three major elements of the project, and interact with the other two elements-the project cycle and project quality. Car companies are often very large, so project planning is the very need of a new project for project management, including cost target. To find a reasonable and feasible project cost target, and to coordinate the various departments working together during the process in the project development to meet the project cost target is the duty of project manager. At the same time in new vehicle development project, we need to use the concept of project management, through overall consideration and dealing with the relationship between cost, quality and project cycle. So we can find the best balance point, to ensure low cost and maximal profit for the project. In this paper, we explain how to achieve lowering and controlling the project cost by the planning, organization, coordination, control, decision-making function of project management through the study of domestic well-known automobile enterprises S company’s actual project; and approving the effect of cost controlling process and methods in S company. Finally through the summary, we get a set of cost control flow system of new vehicle car project for current Chinese automobile enterprises.