Application Research Of Value Engineering Method In Product R&D Cost Management

Information technology innovation is accelerating globally,and new products,new services,and new business formats in the information field have emerged in large numbers,continuously stimulating new demand for sales expenses,and becoming an increasingly active sales expense hot spot.According to statistics from China Industry Information Network,the global smart home market output value exceeded 84 billion dollars in 2017,and exceeded 100 billion dollars in 2018.It shows a growth trend in the next five years and is expected to exceed 150 billion dollars in 2023.In the North American market,brands such as Amazon,Google and Apple have promoted the widespread application of smart homes.China is in the stage of upgrading residential sales expenses and accelerating the integration of informatization,industrialization,urbanization,and agricultural modernization.The smart home market has a large scale and great potential.The scale of China smart home market exceeded 80 billion CNY in 2017,and it is still growing rapidly at a rate of nearly50% per year.However,in general,due to the late start and the gap of per capita consumption capacity between European and American countries,the development level of China’s smart home industry still lags behind developed countries,and there are problems such as high prices and poor product quality.In view of this,using "value engineering method" to improve the management of smart home product R&D costs,and comprehensively enhance the competitiveness of my country’s smart home products is important.The C company was established in 2011,it is a company that focuses on the research and development and production of high-quality electronic products,and provides users with high-quality innovative products.It has established subsidiaries in the Americas,Europe,China,and has established warehouses in these places.Its product range covers consumer electronics,smart homes,outdoor equipment and other fields,it was sold to many countries and regions through third-party platforms and its own platforms.The C company has developed rapidly,with an annual growth rate of more than 30%,its scale has grown from 1 million dollars to 2 billion dollars.The C company has been listed in Hong Kong in December 2020.The company’s product cost accounts for 44%of the sales revenue,and the R & D cost accounts for 6% of the sales revenue.Excluding various expenses,the earnings before tax is 12%.Therefore,it is eager to introduce new cost management methods to save costs and improve profits.According to the research results,80% of the product cost is determined by the R&D and design stage.This article mainly discusses the product cost control in the R&D and design stage,taking intelligent humidifier,the main product of the company C,as an example to analyze the function value and find the optimal cost scheme.At the same time,improve the evaluation method of R&D product decision-making,promote enterprises to comprehensively analyze the adaptability of product cost and function changes to the environment,overcome the disadvantages of enterprises only considering economic factors in product positioning decision-making,prevent mistakes in R&D product positioning decision-making,and provide support for the sustainable development of the company,improve profit level and win competitive advantage.