The Application Of Target Cost Management On Pump Booster Development Project

Traditionally, globe enterprises stand on the high end market of civil mechanicalindustry, but nowadays, China local players are strengthen their competitive strengthby continuously raise their technical and management level, the globe enterprises issuffering higher competition than before, in another hand, with the growth ofmid-class, middle-high and middle market is blooming, in this market, price is a keydecision factor by the customers, as a result, globe enterprises have to develop newproducts which focused on local requirements, also should be price competitive.Usually, the product price competitiveness is mostly laid down when the product is indesign phase, so, it’s of a vital importance and meaning full to research the method oftarget cost management on developing project.This paper is focused on the theory and method discussion, and theimplementation of target cost management. This paper also shows the implement ofusing AHP level analysis tool to identify and confirm the system and importantcomponents cost, as a result, the developers can have the strict cost baseline intechnical solution selection and components design...