Research On The Application Of Target Cost Management Technology In Automobile Research And Development Phase

Under the premise of internet technology changing the market economy pattern and in compliance with the flattening of the world economy,the scope of enterprise competition is increasingly expanding.It is not only competition,but a deeper strategic thinking and exploration among enterprises in various fields.From the perspective of enterprise future,quality assurance and cost control are the most important means to ensure the sustainable development of enterprises.Good cost control management is the driving force of enterprise development and research hotspot.With the rapid development of the auto industry,our automakers have been working hard to develop new products to accept market inspection.The poor target cost management experience during vehicle development steps,leading to the result of new product cost extremely high,low profits,even zero profits.Therefore,how to achieve the target cost management in the process of automobile development is the core problem that the automakers need to solve urgently.This paper gives detailed theoretical elaboration about how to take the target cost management concept in to the practice of vehicle development,how to incorporate customer needs into target cost,how to develop the targets cost,how to confirm the product sales price and profit,how to turn the targets cost into realizable cost,how to timely solve the problems arising from the target cost management.Based on the target cost management implementation during the development phase of Brilliance auto V3 project,the author gives a detailed discussion about target cost establishment,target cost allocation and target profit achievement by means of undertaking target cost management during whole product life cycle.The author combines years of experience in automobile industry and as well as the practical experience achieved in cost management by means of increasing the initial analysis of feasibility,reducing parts procurement costs,increasing the rate of general platform models and optimization of process material utilization,reducing direct labor costs and other ways to ensure the realization of the target profit.Apply the target cost management into Brilliance Auto new product development practice by means of using financial investment analysis model.The successful achievements we received from V3 mode practice verified the rationality and importance of target cost management.Case analysis and comparative analysis are two main research methods.The study result of this paper gives a significant instruction and positive effect for the development of target cost management in Brilliance group future projects.