Research On The Establishment Target Cost Management System Of DLO Company

From the current China's economic environment,the large equipment manufacturing industry competition is very fierce. Producing the same type of product's enterprises,theirs technical level and product quality differences are in the continuous narrowing.To highlight their competitiveness in homogeneous enterprises, starting with their own cost management control, reducing costs and improving enterprise profitability, is one of the important ways to enhance the competitiveness of enterprises.The traditional cost management system already can not adapt to today's fast changing and full of competition and complex business environment, and target cost management is a comprehensive,full participation,the cost management control system, is also such as Japan's Toyota Motor corporation and other large manufacturing companies proved enough to reduce cost and increase profit, an effective method to enhance the enterprise strategic position and competitive advantage in the market. Taking the DLO company as an example, the research on how to build the target cost management system of DLO company is a powerful weapon to promote the company to participate in market competition in the future.Based on the target cost management theory as the instruction, through consulting a large number of literature and the target cost management method and the study of the domestic and foreign well-known enterprise target cost management, combining with the DLO company's actual situation and the current situation of cost management, combining the author DLO company cost management work experience for many years and my own understanding of target cost management,to further study of DLO company four systems build, the construction of target cost management system of organization, process implementation system, performance appraisal system and a continuous improvement system, preliminary developed a theory suitable for DLO company target cost management system.Although the construction of the DLO company target cost management system, the effective implementation of the target cost management to enterprise various departments as well as the expansion of all aspects of the enterprise cooperation and efforts, from the aspects of staff awareness, enterprise system, performance appraisal, etc. to promote the management level, from top to bottom. Also the target cost management is a system, dynamic, advancing with the times management method, will be along with the continuous development and improvement of the economic and social progress, target cost management in the construction, application and promotion, there is no a business can be done overnight, will encounter many difficulties, stress and frustration. Therefore, how to grasp the essence of target cost management, how to improve the enterprise target cost management is worthy of our continuous and in-depth research.