K Automobile Company

The concept of cost control has been embedded in all walks of life.Automobile manufacturing industry is no exception.The cost management in the assembly of K automobile company is the target costing.The target cost is calculated by the cost field of the company through the target of a single price,combined with the target revenue.So,there is no consideration of the actual production cost of the assembly.In the process of using target costing to carry on the cost management in K automobile company,each new model is faced with the problem of the gap between "target cost" and " actual production cost".In the past,we used the lean cost management to reduce waste and costs.However,this approach is unable to support the target cost to achieve the actual production cost.At present,the related literature about the cost management of the assembly in automobile company mostly is about the lean cost management,which is lack of further cost cutting research.According to a research report of the Boeing company on the life cycle cost of the general product,early product development will determine 85% of the cost of the entire life cycle.The cost of the car is also clear in the product design stage.This paper uses the case analysis method to research the single price reduction strategy of the model A in the assembly of the second production.We will analyze the current situation and the confusion of the new car cost management in the K automobile company assembly workshop. And we combine the basic theory knowledge of Digital Mock-Up,Synchronization Engineering,Design for Manufacturing and Assembly,Value Engineering to work together with the field of product development in the early stage of new car product design optimization and improvement of product design.So that we solve the gap between "target cost" and " actual production cost ".As a result,we ensure K automobile company to achieve target revenue.