Manufacturing Cost Control Problems

With the development of market economy, the competition among enterprises is becoming intense, more and more enterprises in China are beginning to realize the importance of cost management. But in general, Cost management of Chinese enterprises is still in the initial stage. Porter's theory of competitive advantage shows that in a highly competitive market, if the companies want to be successful, the primary strategy is cost leadership strategy. Therefore, how to choose the method of cost management to conduct reasonable and effective cost control becomes the key to survive and develop for business.Target cost management is an enterprise, the whole process, full of multi-level, multi-directional cost system, it is an effective way for the enterprises to reduce costs, increase profits and improve the management level. Target cost management is a very effective method of cost management, more and more enterprises begin to use target cost management to control cost, but the application status is not satisfactory. This paper researches the basic theory from the perspective of cost control and target cost management, analyses the problems and the causes of the problems, tries to establish a reasonable and effective cost control system from the perspective of target cost management, provides solutions for the cost control of the enterprises.The contents of this paper is divided into six chapters, the first chapter is the introduction part, introduces the research significance, frame, literature review, research methods and innovations of this article; The second chapter introduces the basic theory of cost control and target cost management, laying the theoretical basis for the following; The third chapter analyzes the current situation of China's manufacturing industry and the problems of manufacturing cost control and the reasons; the IV chapter is mainly directed against the causes of the problems the previous chapter, construction cost control system based on the perspective of target cost management, trying to solving problems. The fifth chapter analyses the results that our manufacturing uses target cost management to control cost and combines the automotive. In the end, the development of our manufacturing cost control is discussed.