Research On Cost Control Of Parts Purchased From Forklift Manufacturer

With the background of price rising on raw materials such as steel,iron,lead,copper,etc.,and serious homogeneous competition among the Chinese forklift manufacturers,HANGCHA group developed internal combustion forklift model CPCD30-XRG72,for business expanding especially in mid-high level market.The model is with high grade configuration and excellent performance,but with high cost,at the same time,the regular way of cost control does not give good result.For solving this problem,the research was made on the following mentioned four aspects:(1)Research was made on the cost structure of different systems and key components of the forklifts,to find out the weak points in the current cost control process.Parts were divided into different classes with importance level,and relevancy analysis of structure,producing process and cost was taken on parts in Class A and Class B for developing the general solution of cost control.(2)Research on the relevancy between the forklift structure and the parts cost was made to understand how structure affects the parts cost,then optimize the structure design by new material,new technology,light weight concept,and also better packing concern.(3)Research on the relevancy between purchasing management and the parts cost was made,and the purchasing ways of different kinds of parts were analyzed.For parts in Class A and Class B,tender management plan was made,which covers processes of prices negotiation,centralized purchasing,local purchasing,global purchasing,etc.(4)Cost reducing process should be made in restrict control for getting continuous improving and details perfecting.Electronization purchasing should be conducted,for enriching the price management system of HANGCHA group,and also pushing the strategic purchasing.By analysis on structure and purchasing mode of Chinese forklift parts,and research on cost analysis and cost control,the cost of a new developed forklift was finally reduced inpractice,which could also work for other construction machinery manufacturers in China for cost control.