Research On Automobile Material Cost Control Based On The Whole Life Cycle Theory

Automobile manufacturing is a highly integrated industry,its upstream covers all manufacturing sectors such as metallurgy,electronics,and chemicals,and the downstream automotive market has promoted the development of leasing,finance,services and other related industries.It can be said that the good development of the automobile industry has a guarantee for the stable development of a country's economy.After more than 30 years of development after the reform and opening up,China's automobile industry has entered a stage of mature development,and the Chinese automobile market has entered a new normal of "stable growth".However,in recent years,industry competition has continued to intensify,and price wars have continued to escalate.For the Chinese auto industry that has experienced an explosive growth period,it is not easy to profit from manufacturing a car,whether it is a self-owned brand or luxury brands,under the same conditions,cost advantage is always a weapon for market competition.Automotive are combined products that are made up of a large number of parts and components through engineering design and process optimization.In the total cost of products,the cost of parts and materials accounts for about 75%.For auto OEMs,most of the parts are purchased from external suppliers,and the material cost control is relatively difficult compared with other internal cost control,which has become the focus and difficulty of cost management for automobile manufacturers.Compared with other industrial enterprises,the automobile manufacturing industry has a special feature,the types,performance,quality and other attributes of parts are determined by the whole vehicle manufacturer in the process of automobile research and design,and the key aspects of automotive material cost control are essentially concentrated in the product design phase.The calculation of the full life cycle cost mainly occurs in the product design stage to estimate the cost of the entire life cycle of the product,and then maintain dynamic cost management according to the target cost in the subsequent links.Based on the theory of product life cycle cost,supplemented by the idea of target cost management,this paper conducts a comprehensive study on the material cost control of B auto companies: firstly,the relevant theories and concepts are organized on the basis of researching domestic and foreign literatures.The academic level studies and introduces the content and methods of material cost control in automobile manufacturing enterprises;then analyzes the particularity of material cost management in automobile enterprises,discusses the strategy of material cost management in the whole life cycle of automobile enterprises;then introduces cases and gives an overview of B enterprises.It introduces and analyzes the current situation of material cost management of B enterprise life cycle;finally,it elaborates the whole life of the product from three aspects: technical cost reduction in product development stage,strategic cooperation in supplier fixed-point stage,and annual price reduction management after mass production.The application of cycle cost management in B enterprise material cost management,and analysis of B company's cost control effect,get the conclusion of the article.Through the analysis of the specific implementation plan and implementation effect of material cost management and control of Company B,this paper attempts to summarize the experience and existing problems of strategic management of material cost in the whole life cycle,so as to make reference for other automobile enterprises,so that China's car enterprises can be fierce.In the market competition,we gain competitive advantage from the aspect of cost.