Research On Improving Project Cost Management Of AB Company's New Product Development From ODM

AB company is a foreign capital enterprise with 20 years design and manufacturing experience in televisions and set-top box remote control field.The AB company's design and quality control ability is at the first place in remote control field,as one of the consumer electronics industry branches.AB company has two EMS manufacturing factories in Suzhou and Wuxi.With the rapidly market changing and increasingly fierce upgrading technology and cost pressures,AB company must adapt itself to the market to maintain its market position.In order to improve the company's core competitiveness,reduce costs,to occupy more market share and improve the company's net profit,AB company sourced the first ODM factory in 2016.The strategy is to subcon the non-core infrared remote control's design and manufacturing to ODM factory to enjoy the lower product cost,invest the company limited resources into the core business to blue tooth remote control.However,some of the AB company top managers have no enough confidence to ODM factory quality and ability,didn't pay not enough attention and support to ODM's new product development project.More worse,some of new product development team members are not fully qualified and there are some ODM project cost management issued due to it's new to AB company.As a result,there were not much cost compared to Suzhou and Wuxi factories,the ODM factories didn't achieve the targeted cost advantages.Half of the actual investment of ODM new product development projects are averagely 10% higher than predicted cost at feasibility analysis stage,therefore,AB company need to reduce and manage the ODM new product development projects cost is the first priority.This thesis mainly studies how to optimize the AB company's new product development projects cost from ODM.At first,it researches the present situation of ODM new product development project cost management,summarize the ODM new product development project cost management existing issues and analyzes the root cause behind.Second,to find out the optimized ODM new product development project cost management directions,including analyze key positions and responsibilities,optimize resource allocation,rationalize cost estimation,optimize cost control phase and points,traceabilize product changes,improve communication methods,inspire and regulate cost saving suggestion and optimize cost appraisal system,to re-design the suitable ODM new projects cost management system.Meanwhile,to ensure the real implementation of improvement system,the improvement program included the guarantee system from resource supporting,process controlling and management supporting.The improvement system and guarantee system will improve the ODM new product development cost management and continuous improve,to minimize the project cost with maximize the project value,to improve AB company core competitiveness,and to meet the sales and profit target.