Total Cost Management Method For The Oversea Products Manufacturing Projects Based On The Purchasing Orders

With the global headwinds and the rapid economic development in China, the cost advantage of “Chinese manufacturing" is gradually weakened. Lots of enterprises are facing the challenge of cost-saving and business mode transformation. In the field of manufacturing, the exporting businesses are mainly based on the orders from the oversea clients, which is the main trend from now on to the near future. In China many manufacturing enterprises begin to take project management methods as the effective way to control the whole exporting business. The above is the background that why this paper makes concentrate on the project cost management for the oversea products manufacturing projects based on the purchasing orders.In this paper, the analysis begins with the cost management needs from the oversea products manufacturing projects based on the purchasing orders. With the collection of theories of total cost management(TCM), we could find the key connection between the total cost management method and the actual projects, which means it seems feasible to have a try of the implementation of total cost management. Then the research will go through two main threads, one is how to implement total process cost management into the projects, and the other is how to implement risk cost management's. Both those two threads are the key parts of the TCM, and are the most wanted part to the projects as well. The paper will build up some cost management model based on some actual project and verify them with simulation. The positive simulation results make the paper realize the target of the research, and provide an effective solution to cost management issue in the actual oversea project based on purchasing orders that enterprises will meet.