Research On Purchasing Cost Control In BHAP

Chinese automotive market is entering into an adjustment period because of increasingly fierce competition and anti-monopoly policy and parallel import, which leads to price reduction of domestic vehicles. BHAP's customers are facing a big pressure of price reduction and expanding market share, the customers transfer the cost pressure to their suppliers. In the face of customer's request, BHAP undertakes the pressure in the market competition. In order to improve the competitive advantage,it requires BHAP to use a lower cost to manufacture the high quality products.Firstly, the thesis introduces the research background and significance of cost control, this chapter puts forward the necessity of purchasing cost control. The domestic and international research status of cost control is introduced, as well as the main research content and thought.Then, the chapter analyzes cost control for BHAP procurement status by combining theory and practice, and recognizes the key elements of BHAP cost control by Value Analyzes to find out the cost breakdown and effective factors, that is cost in design phase and cost in series production.Based on the result of Value Analyze, the purchasing cost in design phase is researched by using Activity Based Costing, the basic concept and general calculation process of Activity Based Costing is also simply described. The key process of production realization which has influence to procurement cost, such as design process, material cost and process requirement, is analyzed and component cost in design phase is estimated.The procurement cost in series production phase is analyzed and researched by using Target Costing. The basic concept of Target Costing is simply introduced and breakdown method of Target Costing is mainly researched. In order to obtain the expected profit, the target cost is control to ensure the target price. It adopts strategic procurement, supplier management and quantity-price management to optimize s procurement activity.Finally, the thesis analyzes the main problems in BHAP procurement cost control and raises solution plan and implements effective evaluation to these problems. Gets a conclusion and looks forward to the prospect.