Research On Production Cost Control Of FAW Group’s Vehicle

In global economic development,the automotive industry has a huge impact on every major automobile producer economy due to the big relevance of automobile industrial output upstream and downstream of the characteristics.As one of the main markets of the global auto industry,the rapid development of Chinese automobile industry make the market competition more and more intensified.Due to the rapid growth of car ownership,Chinese auto industry faces more and more huge pressures such as energy,traffic,environmental protection,resources,and fuel consumption regulations.With the promotion of the Internet,the strategy of competition by technology advantage has come to the end;cost control becomes the key point to promote the competitiveness of the products.FAW group as one of the four main groups of Auto Company in China,it is representative.in the development of auto industry.While Chinese automobile industry facing huge pressure of transformation,this paper choose the FAW group as the research object,to improve cost control methods in the FAW group passenger car production,to improve the cost competitiveness passenger car plate,and to provide reference to other passenger car production enterprises.While researching,literature analysis and case analysis were used in this paper.When literature analysis,the current theories related on cost control of passenger car of were analyzed,to understand the research status of cost control method,the basic principles of activity based costing and the target cost method were learned.In term of case analysis,the cost control method in FAW group was discussed.The currently method of cost control in FAW group is target cost,including the formulation of the cost target,decomposition,cost estimation,achievement of cost target.There are many problems in the process of cost control,such as the low rate of cost estimates;the long cycle of feedback;the achievement of the target cost control can’t be inspected,and so on.According to the basic of literature analysis,the problems of theFAW group were in-depth analyzed.Lack of modern management methods in cost control;the data transmission and controlling process are still stay in the manual stage,resulting in low efficiency,low accuracy,difficulty of data sharing;In the choice of method,FAW select the target cost method as the only cost control method,because of the shortage of the method,many problem cannot be available.In construction of cost control process,there are many controversial points in the current cost control processes: the unclearly dividing of responsibility,the lack of clear evaluation for the results of cost control measures,resulting in cost work cannot be standardized.The above three reasons is the root of the problems of cost control work present situation.Optimization strategy for cost control in FAW group was studied after in-depth analysis of the cause of the passenger car cost control problems,combined with theoretical basis and the actual production and operation status.In the aspect of management,the cost control platform was established,as the result,cost calculation model become standard,the data can be transferred and analyzed through the system implementation,at the same time the efficiency of cost control work and the degree of data sharing will be greatly improve;In terms of cost control methods,on the basis of the original target cost method,the activity based costing was introduced,the accuracy and completeness of cost estimation process will be effectively improve;In construction process,on the basis of the original cost control process,clear cost control results appraisal system was created,a standard cost reduction process was be established to improve job specification,to ensure standardization of the cost control work.The optimization tactics of the specified process that studied in this pater,will significantly improve the effect of cost control in FAW group,provide the cost competitiveness of product.At the same time,the strategy provides a good reference for other manufacturers...