The Research On The Cost Controlling System In FAW-Volkswagen Company

With the consummating of market economy and deep envelopment of world economy integrative, the range of enterprises is more enlarging, the degree is stronger, for the long-views, create quality and cost is the advantage to succeed. So, in these years, cost controlling have already changed to the hard-core and study point. As for China Auto Industry, because the auto market is on the way to international, the internal auto industries in order to meet the large challenge, they all develop new products, but the material cost hasn't got enough emphasis, a lot of companies have lost the competition for the high cost. In all, primary auto industries have already made emphasis on the material cost controlling.With the Chinese economy meeting the international market, internal enterprises have already began to enlarge the cost management model. But only few internal companies have fished for the way to manage, other companies are still in traditionally cost management mode, for the new working condition change, more auto companies are studying foreign advanced controlling ways.In this paper, after the external study and analysis of FAW-VW Audi C6 project cost controlling system, the conclusions as follows:1.Project controlling is better for improving enterprises competition ability and profit, and cost controlling is the most important in it. For Audi C6 project, a new project need large amount, so a perfect project cost controlling system is very important.2.Now the normal cost controlling ways are busywork cost controlling, target cost controlling, restriction theory and lifetime cost controlling. Germany Siemens successfully used target cost controlling.3.With the study of FAW-VW Audi C6 project cost controlling system, three phrases below: a, project feasibility study phrase-target cost controlling. b, project development phrase-material cost controlling, investment, and quality cost controlling. c, project production phrase cost optimize.At the same time, in this paper induct value chain and value flow conception, and analyze the value chain, we can find the ratio of all kinds of value activity and increasing trend, and the new profit increasing point, identify the main cost and those value activities which can increase quickly, are able to change the cost structure finally, list the driving factors and relations of all value activities. Through the analysis, decide the relations of the value activities, search the information, way and the chance to reduce the cost in this value chain. For FAW-VW, the material cost occupy about more than 70% in this value chain, material cost reduction is the most important part; the logistic cost occupy about 10%, with the management of value chain, we can save the cost; Through dependable purchasing quality controlling can reduce the later cost; the Human resource department can improve the efficiency of value activity. Through the analysis of value chain, we can know the connect situation of the whole value chain, and use the value flow to analyze all the parts. This is a good way to control the cost based on the value activities, and give information to improve the cost.4.The success of FAW-VW project cost controlling system get Strategic cost opinion, target cost and standard cost together, but the failure is the controlling system is narrow sense, until now it can't get the fellowship with the suppliers and adopt time controlling. So I give some proposal as follows: A, Project cost controlling system should cost-benefit opinion and strategic cost idea.B, FAW_VW should create the broad sense cost controlling system with lifetime opinion.C, FAW-VW should create the fellowship with the suppliers.D, FAW-VW should reality the quality, cost and time integration.At last analyze the difficulties of improvement cost controlling system, and what conditions should have to change the situation, and optimize the project cost controlling system, get more profit finally.