Research On Cost Management Of New Product Research Project In S Company

With the increasingly fierce market competition, how to survive and sustain stable development is a major facing challenge currently for enterprises. Innovation capacity of enterprises, especially new product research and development capabilities, is an important means to explore the core competitiveness of enterprises, but also the driving force companies to sustainable development. Enterprises must develop new products based on the results of future development strategy, market research, innovation and quickly design in order to provide appropriate services for the market. To gain a competitive advantage in new product research and development, we must strengthen the project management of new product development.As an important part of project management, project cost management is the safeguard of success implementation of the project. Firstly, this paper introduces the basic theory and methods of project cost control in project cost management including practical model-WBS, earned value analysis as a theoretical basis for the cost management of company’s new product development project. Secondly, based on the analysis of status of the S corporation’s new product development project cost management, it analyzes various problems of cost management. In accordance with the problems, it respectively proposes four improved strategies which are preparation resource planning, cost estimating, cost budgeting and cost control. Theses strategies include a range of resource planning definition, using the methods of estimation of different types of cost estimation, making use of WBS to finish project budget, and earned value analysis which is the most important analytic method in cost control. On this basis, it uses the case of new product development project which is named water machine vibration S pendulum and torsional vibration monitoring. By the model and methods of cost management previously proposed, it finishes the estimation and budget cost of, analyzes the cost control of this project by cost earned value analysis and put forward the follow-up improvement measures. Finally this paper uses the method of fuzzy comprehensive evaluation to finishes the performance evaluation of cost management of new the project’s development project. The evaluation result shows that implementation effect of the new product development project’s cost is "better" which achieve the expected goal.The results of the study show that the proposed optimization plan according to S corporation is scientifically; it can effectively improve the efficiency and level of the project cost management.