The Research On The Target Cost Management In Lean Production

Cost management is an key factor of successful business administration. To keep the advantages in the competition of cost, enterprises have to set up effective cost management system on the basis of continual innovation. Today, high cost is still a very serious issue to be improved urgently in traditional production. However, the enterprises which have been in lean production often only pay great attention to changing production management. The cost management is ignored. On the other hand, the enterprises which have implemented target costing are almost in traditional production. They attach importance to the management of the existing product, which is still the passive adaption to the market competition.In view of this kind of phenomenon, this dissertation selects target cost management in lean production for the object of research. It will organize in this way: firstly, it researches the theories of target cost management in lean production that is theoretical foundation of this dissertation; Secondly, it analyses the feasibility of the popularization in our country of target cost management in lean production by introducing the application of lean production and target cost management; Thirdly, it compares target cost management in traditional production with in lean production to stress its research value and emphasize the importance of the union of lean production and target cost management. Then, it sets up the mode of target cost management in lean production, which is constituted by four partial constitutions. They are target costing controlling the implementation of the design stage; activity chain controlling production process; activity-based costing providing information for cost control, just-in-time consummating the mode. Each partial implementation is designed in detail. And the utilization ofShanghai Koito Automotive Lamp Co.,Ltd. is analysed. Finally, it points out where should be noticed when it is applied in our country.This dissertation provides the manufacturing enterprises which having been in lean production with the valuable information about how to improve their cost management. It also enables those having not to choose and apply one of the cost management modes. Therefore it has some practical value.