Research On Project Cost Management Of New Product Development From M Company

This thesis is specialized in the study of the Project cost Management of new products in the M company.M company is one of word’s top three companies in the automobile connector field. Automobile connector market is the biggest in the connector market. From the forecast in the next 5 years(2016-2021), Automobile will be keep around 5% increasing per year in the world. Automobile connector will have a bright future and huge development space.However, in the recent years, Automobile faced more and more competition. The price is the key factor of the competition. The low price competition takes new challenge to the Manufactures-How to develop new product with low cost. In the future, low price and low cost will be the reality that Automobile connector manufacturers need to be faced. In order to keep healthy and stable development, manufactures need to change the new product development strategy to adapt the market.Project cost system and final system of new product development is very good in the M company, and calculation for the cost estimation, cost budget and target cost is very good as well. However, the target cost control of M company with big problem, more than 60% projects the actual cost over the target cost with 10%-20%. Nobody to do the cost variance analysis for the over target cost items, and no any corrective actions, the owner just submit the cost change requisition to management. There is no Dynamic cost control and cost variance analysis during project development, just review project cost in the every phase review meeting.So, Project cost management is important significance for project cost control of the M company.This thesis mainly explained the study of how to control the actual project cost under the target cost, mainly through the project management plan, mainly through the cost budgeting, to develop the project target cost. Implement Earned Value to monitor project cost status in the TMAP project development, to find out the cost variance, analyze the variance and take corrective action to control cost in the target, make sure the TMAP project running smooth.Through the TMAP project case study, shows the Earned value management is very useful for project cost control. It can control the actual cost under the target during project development, and the Earned value management can provide the low cost solution of new product to customer, improve the competitive strength of the company. The study of this thesis can be used for reference to other manufacturing enterprises which project cost control is not good.