The Research Of Cost Control On DAAE M10Engine Project

In recent years, with the continuous development of our economy, the autoindustry of our country has been healthy development, The number of automobileproduction and sales keep the first in the world. In the next few years, the world’sbiggest auto market to maintain Chinese, most in demand pattern should’t change.At present, the automobile industry has become an important pillar industryin regional economic development, greatly promote the local economydevelopment With the gradual opening up market, a large umber of foreignenterprisesinto, market competition is becoming increasingly fierce, maintain the intrinsicfactors affecting the car prices in the supply increases, technology upgrading, costreduction, market overall steady decline.In this context, the problem of cost management is the limit of the utomotiveindustry especially prominent problems in the development of independentbrands. Now a newdevelopment period shortened, at the same time, the technicallevel of automobile products continues to increase, the user’s requirements more fine,the traditional cost management method has been unable to adapt to the new productdevelopment project requirements, can not meet the higher requirements ofthe enterprise on the new product development schedule, cost.On the car, the engine is the core component in the automobile, automotivetechnology is the most complex part. The performance and cost of the engine has playa decisive role in the position in the vehicle. In the increasingly fierce competitionin the automotive industry,how to develop the new engine in a relatively short periodof time, but also to meet the low cost and the whole carfactory requests, hasbecome a new subject of engine enterprises.Based on the background of automobile industry, the M10engine developedby DAAE as an example, using the theory, tools and methods of cost anagement, thecauses of problems in project costmanagement in the process of cost estimation, cost budget,cost control phase are analyzed in detail, aiming at the existing problemsof the different stages of the projectdifferent solutions.First, from the project work breakdown structure, project resource plan, projectcost estimation, cost budget of projects started, established the project budgetsystem;secondly, put forward the key of project cost control, thecontrol program ofproject cost control and cost of development, and using the method of earned valueanalysis to control the project cost; again, through the methods of valueengineering analysis and controlling project change tools, established the project costimprovesystem; finally, the application effectiveness of the project cost controlscheme are verified, to better guide the M10engine project cost control.The new product development project cost control has a certain reference valuefor DAAE, also hope to be able to provide the reference for the automotive industry R&D project cost management.