Research On Cost Management Of The Technical Renovation Project Of Jinsheng Machine Tool Company

As the traditional manufacturing enterprise, in recent years, Jinsheng machinetool Company’s management situation is not optimistic. Its current main products arelow-standard Nc machine tools and common machine tool. This part of the productmarket competition is intense, profit space is small, and the market demand for largerCNC machine tool production of middle and small. In this context, the company topleadership study decided to implement the production center of gravity to high-gradeCNC machine tool is an important transition reform measures. This paper studied theJinsheng machine tool company technical transformation project is an important taskin the process of transformation.This technical renovation project is divided into three phase, the first phase is therebuilding and adding auxiliary equipment, the second phase is the implementation oflow-end products, focus on solve bottleneck in high-grade CNC machine toolindustrialization; the three phase is to add key processing equipment. The projectplans for2years, and will invest400million yuan, which is all self-raised byJinsheng machine tool company. The funding mainly comes from bank loans andcorporate bonds, so the use-cost is high, the flexibility is less and there are certainfinancing constraints. In the process of project implementation, strengthen themanagement of various expenses is of great importance.At present, the first phase of the project has been completed. As things stand,cost overruns and funds shortage phenomenon is serious, and they have produced badinfluence on construction project follow-up.We analysis the its existing technical transformation project cost, and find that it is lack of complete and reasonable cost of the project management system andprocess. First of all, its cost management content is not comprehensive, lacking ofproject resource planning; Secondly, the cost management method is not science,such as the project cost budget and the enterprise comprehensive budget, to theproject target cost decomposition on time for the node. In addition, the cost controlmethod is simple, cannot achieve the real control function.In the face of the above situation, this paper chose the technical renovationproject of Jinsheng Machine Company as the research object. Then we put forwardtechnical transformation project cost management optimization scheme from fourmajor aspect: project resource planning, project cost estimation, project cost budgetand cost control. Firstly, project resouce plan identifys the type, quantity, requiredtime, price as well as the access of the resources. This work is the basis of project costestimate and budjet. Secondly, project cost estimate requirs a more comprehensiverange of estimates and more reasonable methords to estimate.Thirdly, we shouldregard the project cost budget as an independent management work, and inaccordance with the multi-dimensional decomposition in order to meet the demand ofcost control an evaluation. Forthly, the project cost control should include the wholeof the project life cycle and optimize its control methods.Only optimizing the content of project cost management can not effectivelyachieve the purpose of cost management, Jinsheng machine tool company technicaltransformation project has to improve the optimization schme by consummating theproject cost management process, establishing the project cost managementorganizational structure, toughening project funds management and strenthening theconstruction of information technology.Through the study of this paper, we hope to improve Jinsheng machine toolcompany technical transformation project cost management level, to achieve the purpose of the project cost management, and to improve project performance.