Professional Documents
Culture Documents
Qingmin Yu
Department of Economic and Management
Shunde Polytechnic
Shunde, China
e-mail: qingmin_yu1@sina.com
AbstractIn response to the economic recession in developed
countries and the rising of domestic raw material prices and the
economic downturn, refrigerator manufacturing companies must
choose the road of cost control in order to reap the survival and
development. However, the product design stage is the key to cost
control of the refrigerator. In this paper, using the target costing,
value engineering analysis to the cost control problems in the
refrigerator design stage, the author proposes some improvements
in cost control measures and suggestions.
III.
I.
INTRODUCTION
members
are staff from the purchasing department,
production department, quality department and the ministry
of finance. The five departments are a parallel relationship,
and they direct grant general manager of command. Such
organizations makes the project team members consider only
the interests of their own departments and conflict when they
encounter the problem of cost control. For the staff of quality
department, the concept of cost control is relatively weak,
they pursuit absolute quality, regardless of cost and hope to
use the best raw materials,contrary to cost control.Production
departments always want everything to facilitate the
production, all exactly the same model and style does not
change, because if too many models and styles change easily
lead to a production error, then give production trouble. For
purchasing department, the annual procurement need to be
frugal of raw materials. In order to achieve the objectives of
the department , purchasing department always gives the cost
of materials containing water in new product development,
which will result in cost control budget data high to the
actual cost. In addition, the main assessment index of the
development of staff is as following: development schedule,
and performance testing of the refrigerator, and energy
demand. Although there are the indicators of cost control,
they are not a major assessment indicators, when cost
control targets are not reached, the punishment is not
enough, which has led to cost control in place.
239
Shell
0.40
150
0.49
0.82
Press the
F
distributi
on of the
target
cost
112
Inner shell
insulation
layer
process
transparent
tape
total
0.30
100
0.33
0.92
84
16
0.25
50
0.16
1.53
70
-20
0.05
0.02
3.06
14
-9
0.00
0.00
0.00
1.00
306
1.00
1.00
280
26
Part Name
Current
cost
the
amount
of
reduing
cost
38
240
REFERENCES.
[1]
General
manager
[2]
Development
dept.
Purchasing
dept.
Production
dept.
[3]
Quality dept.
[4]
Finance dept.
241
X.L. Wu, The target cost management, CA: Economic Science Press,
2006.
R.B. Stewart, The basic of the value engineering, CA: Mechanical
Industry Press, 2007.
J.J. Shen, J.M. Shen, The basic of the engineering, 5th ed., Value
engineering, 2004.
C. Dong, Y. Zhang, Target Costing Review, 10th ed., Operation and
management, 2011.