Research And Practice Of Target Cost Management In Construction

As an advanced cost management system,object cost management has been extensively adopted by the Japanese, European and American companies for a long time. In Chinese manufacturing industry, now, some enterprises start to promote this system, too. But as to the domestic construction companies, because of the single piece nature of a construction product and the cost calculation & analysis in varieties of an object process, that results in the object cost of construction item being assured hardly.The reasons for the failure of implement of the object cost management in Chinese construction companies, the author thinks, by a long-term practice and investigation, are followed below:(1)In the traditional construction cost management, important the control targets of total cost and lack of specific targets of single-mandate cost control;(2)Pay too attention to the cost control in the process of implementing the project, while neglect the management of the control targets'development before a project beginning;(3)The real consumed resources and the accountant count are not synchronous;(4)The fashionable cost analysis and control method can not completely meet the dynamic management;(5)The management level of the construction cost management cannot achieve overall improvement under a single item- Manager sector (item management organization);(6) The management focused particularly on the afterwards survey, but ignore the prior control;( 7 ) The traditional management tools cannot meet the management of inter-departmental, cross-organizational and huge-information. In this paper, through the analysis of the characteristics of construction product, the author finds a method of decompose a project into several standard items which eliminates the influence of single-piece nature to the cost control. Simultaneously, on the basis of traditional project management theory and manufacturing target cost management theory, the author explores a detailed expectation on the measures of budget, analysis, control and accounting of the cost management and on the foundation of the cost management indicator system, the implementation process of the cost...