Cost Control In New Product Development For Company X

The development cost mainly includes facts cost,quality cost,information costand environment cost in new production development Every different costpruoduced horizontal linkages, interaction,connection and each other constraintduring them. We can not single valued and how to reduce the development cost ofnew products, but to the comprehensive to consider. Therefore, this thesis not onlyanalysis of new product development cost, but also researches correlation duringevery project the costs, to improve rate of quantity and price as a purpose, to valueengineering theory as a guide, to product design, production, sales and use cycle as astarting point, demonstrated the for technical indicators and economic benefits ofthe production, to optimize every interrelated cost project and work flow during thewhole of process in the new production development, improve the efficiency of theuse of funds and improve optimum utility of human, to meet the enterprises pursuethe need to reduce costs.What’s more, this thesis designs a new method of the new product developmentin the enterprise. Under this method, the enterprise is supposed to collect marketinformation and classify its competitive interval and determine their majorcustomers and the maximum need of the customers, then market orientation anddevelopment direction of the new product should be determined based on theseinformation. There will be countless assignment scheme due to the interrelation andconstrain of different cost, a suitable product cost plan will optimize the producttarget cost configuration and enhance the capability of product cost control,otherwise high cost will lead to the product competition space is limited, or low costwill make products use value too low and the market cycle too short. Enterprise willnot be able to make a profit from too high cost or too low cost and have to redesignproduct.This thesis consists six chapters, the first&secnond part are the introduction,combined the background of product development of industrial enterprises, explainsthe necessity of the study, collect and organize information about the new productcost control at home and abroad, and puts forward the personal opinions andmethods to solve the problem. The third chapter is mainly to define the internal factor of cost control inproduct development, and introduce some related concepts, determine the guideprinciples and scope of cost control in this thesis.In the fourth chapter each costs project during the new product development isstudied, besides element cost control, quality cost control and environmental costcontrol strategy in target cost control of new product development are illustrated indetail.In the fifth part the flow of cost control in new product development isexplained in detail.The sixth chapter, combined the practical case of enterprise illustrates theapplication of cost control in new product development.