Target Cost Prediction Based On Hongxing Flange Chanson Project

In recent years, along with acceleration of urbanization process in China, the real estate industry welcomes a rapid development.Construction field is the stanchion economy industry in China.Construction enterprise is the main part of the construction field in our country.As China's reform and opening policy progresses,the competition among construction enterprises is increasingly violent in the developing market economy.However, the development of China's project cost management was still slowly, the traditional project cost management mode has been unable to meet the development real estate industry's pace. So the full application of project target cost forecast is effective method of project cost management in real estate industry. Effective target cost management plays a very important factor in today's competitive market, target cost management is still in the exploration stage in China.Many construction enterprises can not adapt to this new market environment and make enough profit in these years; moreover, some of them are heavily in debt and even bankrupt.The factors which cause this dismal situation are many kinds,but the most crucial thing is the cost factor.It is an important part of modern enterprise management,and is the core of the construction enterprises.In order to survive in intensive competition,some construction enterprises establish a more apposite cost system called target cost management for cost control.Compared with the work of enterprises oversea,especially for that of multi-national corporations,TCM in China is so backward that can not suit to the fast developing market economy.In this paper, on the basis of actual engineering projects, use regression analysis and Grey forecasting model to study project cost forecast. we applied the models in actual case, the paper also combines practice and theory through the model of regression analysis and Grey forecasting model, and proved the validity of the model.The core content of this paper mainly includes the following three parts:Firstly, analysis our country's cost management and target cost management. According to the status of the project cost management field in China, the new cost management theory were studied in this paper.Secondly, this part discuss the several mainly steps which contains preparation, formation,decomposition, execution and summary, adjustment of target cost.And mainly focus on the part of target cost's formation. In terms of the cost forecast, we introduced the theory of regression analysis and the general steps of the theory to establishment the cost forecast model.Finally, combine the actual case using regression analysis to creating a special model and using software SIMCA-P, Software SPSS to analysis.In this paper, building a real estate development project cost management as the core of target costing, the real estate industry in China to strengthen cost management reality.