dc.description.abstract | After the successful lead-in by Japan and United States leading enterprise, the target costing system has been confirmed to enable the enterprise for the impact on global competitive prices, and can make great profits. It is also a strategic management system. For now, there are lots of articles and essay to demonstrate and collect the executive procedure of target costing system. My research is concerned if these executive procedures of target costing system could be carried out for other companies with the same cost benefits and results. Regarding the target costing system, there are few articles to discuss the following issue, such as company organization culture, business system and personnel capability.
The focus of my Research is the case company, and demonstrates the critical issues of target costing. Especially concerned the implementation procedures and in accordance to strategy, including the personnel procedure, strategic procedure and operating procedure. Also, my research analytic framework is from the book “EXECUTION”by Larry Bossidy and Ram Charan. According to my research framework to analyze and summarize the critical issues and strategy while the case company carried out the target costing system. Listed below are my research results,
1. Personnel Procedure
To carry out target costing system, the essential step is to establish cross-department team in the enterprise interior. That is, the team leader needs to integrate various departments specialty, find out the questions which possibly occur in the product phase of exploitation and find the solutions. Therefore, the cross-department team must have sincere plan and management to carry out the strength and achieve the best effect.
2. Strategic Procedure
The target costing system is strategic cost management system. Its strategy is market-oriented. In order to achieve the Win-Win situation, the task is to make products for the customer demand, affordable price and company gained profits simultaneously. Therefore, the critical issues and agenda need to be set up clearly in advance, and fully inform the cross-department team member understand in detail before the system is launched and help the operation procedure to be effective and successful.
3. Operating Procedure
There are two important stages, respectively the target cost setting stage and target cost execution stage. There is frequently the most extensive and time-consuming aspect of the target costing process for the organizations studied. In summary, the critical factors to achieve the target costing system must strengthen the execution, including the personnel, strategic and operating procedures. My Research focus on the case company, and to demonstrate the critical issues of target costing system. | en_US |