MANAGING TARGET COSTS AT THE DEVELOPMENT STAGE OF A PRODUCT

At the development stage of a product, target cost management has a significant effect on achievement and maintenance of product competitiveness in a given market and the desired target profit as the primary aim of production. Target cost management, i.e., target profit management, is performed by evaluating individual variations of a conceptual and preliminary design solution for a new product and by choosing the solution with the lowest development costs. The paper presents the use of Adaptive Neural Fuzzy Inference System model for managing development costs on the example of double-row angular contact ball bearings as an example of applying the above approach to market positioning in relation to competitors.

Enablers of Target Cost Management Implementation: Evidence from Malaysia

This paper examines the enablers that influence the implementation success of target cost management (TCM) in the Malaysian context. A single case study was carried out at an automotive company in Malaysia. Using the innovation diffusion theory, this paper explains the key enablers that may influence the successful implementation of TCM in the Malaysian context by conducting a survey and interviews within the case company. The findings show that only teamwork, top management support and commitment, and training are the significant enablers for the successful implementation of TCM in the case company. This study provides an initial understanding of the critical factors that influence the successful implementation of TCM in the Malaysian context. The findings suggest that priority should be given to human-related factors, such as teamwork, top management support, and training to support TCM practices. As the findings are based on a single case study, the findings are of more relevance when the intention is one of particularization. Teamwork has contributed to the successful implementation of TCM in the case company because it is under a joint-venture agreement with a Japanese company. Employees tend to be more disposed to some aspects of Japanese culture, such as high in collectivism.

Application of Target Costing method in the Hospitality Industry

Traditional approaches to managing costs are based on the costs that are the result of existing capabilities and resources in the company. Adding to these costs a specified margin or profit, leads to the sales price. If the market is not ready to accept such a selling price, managers need to find opportunities for rationalization and cost reduction. Target cost management begins the process of managing the sales price and the planned profit that the market can accept, and only then is it possible to determine the cost of the product. In the planning phase of the product and the manufacturing process the approach is to finding a method to lower costs and to reduce them as much as possible. The aim this of study is to investigate the application of target (strategy) cost accounting methods in the Hospitality Industry.

Implementation of target cost management in a non-Japanese environment

Purpose Drawing from dynamic capability theory, this paper aims to examine the implementation of target cost management (TCM) in a non-Japanese environment. Design/methodology/approach Based on a case study at Company ABC, an automotive manufacturer in Malaysia, this paper investigates the differences in the TCM implementation process between Company ABC and companies operating in the Japanese business environment. The data were collected through in-depth interviews, direct observation and document reviews. Findings Using a single-case study approach, the findings show that although the case company follows similar fundamental steps of TCM as highlighted in the literature, it has modified the detail of the TCM steps to some extent to match with the company’s resources, business processes and strategic routines. Research limitations/implications As the study used a single-case study approach on an automotive company, the results cannot be generalized in other settings. The findings give an insight into the TCM implementation in a developing country such as Malaysia. Better understanding of TCM as a business competitive tool may help to promote TCM application in other developing countries. The findings help new potential TCM companies in the same industry to mitigate and leverage the risk of failure in implementing TCM by modifying the TCM implementation process to suit their contextual environments. Originality/value This paper attempts to explain in depth the TCM implementation process in the case company and highlights how the dynamic capabilities can cause differences in TCM practices compared to those practiced in the Japanese context.

TARGET COST SYSTEM IN STEVEDORING: IMPLEMENTATION PROBLEMS

N the world practice there has been accumulated the significant positive experience on application of the target cost management system (target-costing) focused on developing the product cost, taking into account the industry average of the profit and market price. Russian companies also need to take advantages of the technology of managing the production cost of demanded goods and services at affordable prices. Target costs make a part of the organization's costs of product manufacturing, which must be adjusted without compromising quality, according to the price requirements and consumer preferences. The use of a targeted approach is possible not only for the cost management of the new, developed product, but also for traditionally produced, existing “old” product, for the purpose of its price actualization to the consumer needs. Russia's integration into the world system of distribution of goods and other material resources puts certain requirements to the state of the sea port economy and the port organizational and technical level, to the quality of stevedoring and other services. According to experts, commercial and transport vessels spend almost half of their operating time in Russian seaports, the efficiency of which depends on the volume and flexibility of cargo transportation. Tariffs and quality of services rendered are of great importance for carriers - consumers of stevedoring services. Application of the target costs system in the RF port economy is a very popular innovative management technology. The data on the Astrakhan sea port operation during 2014-2017 have been analyzed, which revealed the need to use target-costing in stevedore services management. Methodological and organizational approaches to the identification, assessment and optimization of target costs for stevedoring services are aimed at improving the efficiency of the seaport and at expanding the practice of using modern accounting management tools.

Implementation Of Automated Systems For Target Cost Management And Assessing Performance: A Case Study In A Global Automobile Component Company

We examine the implementation of automated systems for target cost management and assessing firm performance in global automobile component company. After financial crisis, companies need to make strategic decisions as fast as possible. However, global companies are difficult to make fast decisions because of taking time for sorting the internal data through oversea companies. Also there are difficult to build systems of cost management and assessment of performance achievement. In this study, as we explain elaborately about the automatic process of cost management and assessment of performance achievement systems in global automobile component companies, we provide practical implications of this benchmark case for other companies’ automated target cost management systems and assessing performance system’s innovations.