Innovation Management Co., Ltd. supports companies’continuous innovation, builds a strategic business framework and provides a project management scheme utilizing our various proven performances.

Execution

Project Cost Management

Low-cost corporate culture is a major competitiveness advantage.

Producing scheduled results within the limits of recourses (costs, people and facilities) is the essence of the project management of product development, and low-cost corporate culture, especially, is a major competitive advantage.

To establish low-cost corporate culture, continuous cost-reduction activities of the organization axis mainly with single-year management and cost management of the project axis with multi-year or long-term budget should be implemented at the same time, and cost efficiency must be figured out appropriately.

Challenges that many companies face

  • Single year budget management focused on comparison with the previous fiscal year is based, and it’s not the budgeting that reflects the number and the situations of the projects.
  • Whether the cost is used properly to the results cannot be confirmed because the cost against the progress of the project is not figured out.
  • The organization is rigid so that cross-sectional cost allocation in a single project cannot be made.
  • Every time expense calculation with a co-developer or expense comparison with an outsourcing contractor is needed, the necessary information has to be collected because the results of the project cost are not visualized real-time.
  • It takes tremendous amount of man-hours to collect and accumulate cost information because the management is not unified.

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We support you to build well-balanced cost management between the organization axis and the project axis.

Cost management process building

We form a standard template for the information needed for decision makers to make decisions, and through the documents based on the template, we fit the consciousness of information providers and decision makers together.

Organization of cost information

We organize cost information necessary to carry out project cost management.

Account titles After accounting titles of the project cost is matched to that of company-wide financial accounting, define the level of the accounting titles necessary for the project cost management.
Logic of indirect expenses allocation Define on what basis and in what range indirect expenses incurred in an organization are allocated.
Logic of personnel expenses allocation Define information and calculation logic for personnel expenses calculation such as the unit of personnel expenses and actual man-hours.

Cost management IT system building


By aligning the company-wide accounting system and a project cost management system, cost information can be visualized after ensuring the integrity with an organizational budget management of fiscal accounting.