Cost Management Research On Product Design

Though the expenses of design process occupy5%of the product total cost, it decides70%-80%of the product cost. This establishes the importance of cost control in product design process which is also an important issue in modern cost control. However, current cost control and management research on product design stage concentrated only in the engineering fields. In accounting fields, the reseach about cost management mostly concentrated in the manufacturing instead of design procedure. in Product design phase, cost management of both theory and technology are not yet ripe.Beginning with exposition of the research background and the significance and based on the strategic cost management and target costing theiries, this paper combined the engineering design theory and knowledge from the new accounting perspective. Based on analysis and evaluation of two methods of strategic cost management——ABCM and target costing, the paper put forward the " target-active"cost management system as the basic theory framework, which closely contact with the product design process.Also, the model, features, aspects and advantages of the system are described in detail. Based on product life-cycle costs and the characteristics of CE, the paper solved how to determine the product-level target cost in the beginning of design lacking of information, and to make a preliminary evaluation of the product-level target cost by AHP method. With the division of function modules simultaneously target cost of the decomposition, this paper presentd the evaluation method of functional level sub-target cost by DEA.From whole life-cycle cost perspective, the paper focused on production, size, volume and material which affect the preparation costs and material costs, established a quantitative model, which can determine the new cost structure from prototype product, and search for cost reduction focus. Also, the cost control rules are proposed by quantitative and qualitative analysis. This paper analyzed the characteristics and cost factors of the technology and assembly design which affect the processing cost, summed up the shape of low-cost rules and organizational measures.At last, On the basis of detailed analysis of cost items and its constraints, the paper built production-frame knowledge representation system of cost information, and discussed the implementation in knowledge base from the object and relational mapping, reasoning and other aspects. Based on this knowledge reasoning mechanisms, the paper formulated the cost reduction measures evaluation system.The main innovation points list as follows:integrated the target costing and activity-based costing into each product design process, this paper proposed a active-target cost framework of cost management which supports the whole product design processes in collaborative design environment. Then, this paper put forward the model of the target cost decomposition, evaluation and feedback, which is applicable for all the process of product design. Through the various factors and process affect cost analysis, this paper clear the cost control key points and puts forward the low-cost form design role.Meawhile, using produced-frame representation, the paper construction cost reduction decision system based on knowledge management.Finally, the paper describes an examples based on the methods of the above.