Study On Methods And Application Of Project Cost Control In WR Light Industry Machinery Co.,Ltd

Fierce competition exists in machinery manufacturing enterprises from the traditional planned economic system to market economic system,these companies need reduce their costs to achieve competitive advantages.But nowadays machinery manufacturing enterprises still remain on the extensive management style,these companies must advance their cost management system if they want to get higher profits,occupying bigger competitive advantages.Our paper choose WR Machinery Co.,Ltd as our case study and analyze object,and then find that WR has extensive management and unscientific protocol in material purchase management,cost budgeting,cost control and cost assessment.To solve above problems,we need establish a set of scientific and systematic cost management system and assistant system.In this paper,we used the method of Zero-base budgeting to cost estimation,and give full play to the creativity of basic units,improve the management level of cost estimation,and further refine the process system of cost planning.The cost budget management method is based on the Activities-Based Cost Method,which are combined with cost feed forward control and feedback and the combination of cost calculation and cost management.And it is realized the "total cost budget management system".The cost information distortion caused by the traditional cost calculation method of WR company is overcome;The enterprise operation chain is improved,and it improve the operating efficiency,it is conducive to the enterprise analysis of the cost of the cause,and then reduce the cost.The cost control system adopts WBS(work breakdown structure)method,and establishes the control mechanism of raw material purchase cost,labor cost,mechanical cost;The cost evaluation of the senior management personnel take the key performance index method,the project team members take the cost evaluation mechanism,and the method of sub monthly,quarterly intermediate evaluation is established.In the paper reasonable and feasible countermeasures are proposed,and they are applying to the WR company manufacturing projects.It is hope to help improve the cost management level,and also hope that this paper can provide some useful reference for the mechanical manufacturing project cost management.