Study On Cost Control Of Regulator New Product Development

As productivity increasing, the economy development is very fast. With it comes, theproduct competition become more and more strong and price of product is getting lowerand lower. In order to keep reasonable profit during business, cost control is particularcritical. However, traditional cost management can’t provide cost information timely,accurately and effectively to the needs of enterprises. In the mean time, the current costcontrol method focus on mass production, but cost at design phase effect the final productcost quite larger per current study. Because the cost would become fixed cost after designfinalized, the cost reduction is limited during mass product.This paper would study the method of cost control for new product development.Firstly analysis product platform BOM and new product development process thenoptimize new product cost by cost optimization technology.Then, the theory of activities based cost (ABC) is introduced and studied theapplication in cost management including cost plan model and model solutionIn the end, based on cost plan model, the theory of value engineering(VE) isintroduced to take the control of cost, Furthermore, a process is set up to control the cost.This paper has developed a systemic cost management method and a control processfor enterprises in regulator product. The author hopes that they could be referenced by thecompanies and that they could contribute to the improvement of cost...