Reducing costs in manufacturing firms by using target costing technique

Globalization and advanced manufacturing technologies have forced manufacturing firms to increase productivity while reducing costs. At the same time, customers are increasingly demanding better products considering tangi- ble (e.g., smell, color, taste) and intangible (e.g., mark, fair treading, and envi- ronmental responsability) attributes. Currently, Brazil consolidates a position as the largest producer and exporter of coffee, accounting for 30% of the inter- national coffee market. This paper presents a stochastic model for performance evaluation and planning of coffee manufacturing process aiming at reducing the cost and time of the production cycle. An industrial case study shows the practical usability of the proposed models and techniques.

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Extent of Implementing Target Costing and Value Engineering Approach to Reducing Costs: A Survey in Jordanian Shareholding Companies for Food Industries

Asian Journal of Finance & Accounting ◽

10.5296/ajfa.v10i1.12606 ◽

2018 ◽

Vol 10 (1) ◽

pp. 390 ◽

Cited By ~ 1

Author(s):

Suleiman El-Dalahmeh

Keyword(s):

Response Rate ◽

Engineering Application ◽

Value Engineering ◽

Target Costing ◽

Food Industries ◽

Engineering Approach ◽

Target Cost ◽

Expected Benefits ◽

Reducing Costs ◽

Basic Hypothesis

This Study aims at identifying the extent of implementing Target Costing and Value Engineering approach to reducing costs of Jordanian public shareholding companies for food industries. To achieve the study objectives, the researcher distributed personally a questionnaire to a random sample of (145) accountants in the Hashemite kingdom of Jordan. (100) questionnaires were returned. The response rate was 69%. In addition, the survey sought to verify the five basic hypothesis of the study. In order to analysis the data, the researcher used means, standard deviations and T-test. The results of the survey revealed that availability of the components of application of target cost, as well as companies have awareness, concepts, principles and the importance of applying target costs to managing costs so as to improve profitability, and the companies are using value engineering to achieve a cost to reach the target costs. The results also showed that there were some difficulties to hinder the application of target costs and value engineering in Jordanian shareholding companies for food industries. The most important difficulties were: The lack of sufficient knowledge to manage the company on how to implement the target cost and value engineering. The lack of research and publication related to the benefits target cost and value engineering. Application costs greater than the expected benefits.

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The Framework for the Classification of KM Strategies in Manufacturing Firms Based on Target Costing and IT Infrastructure

The Journal of Information Systems ◽

10.5859/kais.2012.21.3.45 ◽

2012 ◽

Vol 21 (3) ◽

pp. 45-70

Author(s):

Jong-Min Choe

Keyword(s):

Manufacturing Firms ◽

It Infrastructure ◽

Target Costing

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INNOVATIVENESS IN THE FACE OF DECLINE: PERFORMANCE IMPLICATIONS

International Journal of Innovation Management ◽

10.1142/s136391961450039x ◽

2014 ◽

Vol 18 (05) ◽

pp. 1450039 ◽

Cited By ~ 7

Author(s):

ERIC HANSEN

Keyword(s):

Past Research ◽

Manufacturing Firms ◽

Limited Evidence ◽

Global Recession ◽

Firm Innovativeness ◽

Firm Response ◽

The Face ◽

Reducing Costs ◽

Using Data

The recent global recession has focused efforts towards better understanding of both firm response and the outcome of that response to recession, or decline. Past research suggests that firms either respond by being conservative, reducing costs, etc., or, they proactively try to innovate out of the decline. This work examines the various responses to decline with respect to firm innovativeness. Using data from US manufacturing firms, it is shown that innovativeness has important performance implications even in dire economic times. However, increasing innovativeness levels during decline is not shown to be superior to maintaining innovativeness. Findings provide limited evidence that decreasing innovativeness is not a desirable downturn strategy. Potential, practical, and theoretical implications of the findings are presented.

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Methodology for a Process Approach to Cost Management at Manufacturing Enterprises

Economics and Management ◽

10.35854/1998-1627-2021-8-633-639 ◽

2021 ◽

Vol 27 (8) ◽

pp. 633-639

Author(s):

I. A. Naugolnova

Keyword(s):

Business Process ◽

Value Chain ◽

Cost Management ◽

Process Approach ◽

Target Costing ◽

Logical Scheme ◽

Manufacturing Enterprises ◽

Conventional Structure ◽

Reducing Costs ◽

Core Idea

Aim. The author aims to develop an original methodology for a process approach to cost management at manufacturing enterprises. Its core idea is the possibility of increasing overall enterprise efficiency and reducing costs by using internal reserves identified as a result of business process optimization.Tasks. According to the author, a process approach to cost management is future-oriented and has not yet been properly developed — hence the goals of developing and improving the theoretical and methodological foundations of its implementation.Methods. The methodology for a process approach to cost management is based on the most effective (from the author’s perspective) elements of such methods as “ABC-costing”, “Value chain concept”, “Cost-drivers”, “Target-costing”, “Kaizen-costing” with the author’s additions.Results. The author’s methodology for a process approach to cost management with regard to manufacturing enterprises is presented in the form of a structural and logical scheme. Its elements allow the reader to understand which methods, means, principles, and techniques can be used for its introduction and implementation. The fundamental basis of the methodology for a process approach to cost management is the author’s vision and definitions of the “object” and “subject” of cost management. The conventional structure of the representation of elements in the methodology is supplemented by the following units: “The form of implementation and organization of a process approach to cost management” and “Periods”.Conclusions. A process approach to cost management combines several of the most effective methods of cost management and accounting, making it possible to bring the level of expenses of an enterprise down to a competitive level using the internal reserves of the enterprise.

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Competitive environment and corporate constructs of price and costs in the UAE

Corporate Ownership and Control ◽

10.22495/cocv17i4art11 ◽

2020 ◽

Vol 17 (4) ◽

pp. 129-141

Author(s):

Fernando Zanella ◽

Peter Oyelere

Keyword(s):

Mixed Methods ◽

United Arab Emirates ◽

Mixed Methods Research ◽

Manufacturing Firms ◽

Policy Implications ◽

Research Approach ◽

Annual Data ◽

Business Practices ◽

Target Costing ◽

Survey Results

Target costing is a cross-disciplinary subject with several unexplored academic dimensions besides having applied business practices and economic policy implications. In this paper, we use a unique combination of mixed methods research approach to investigate the adoption of target costing by manufacturing firms in the United Arab Emirates (UAE). The first employed method is the new Dumitrescu-Hurlin (D-H) Granger non-causality test for heterogeneous panel data, while the second is a survey. The D-H test with annual data indicates the adoption of target costing by the publicly listed manufacturing firms. When using quarterly data, but with a smaller sample of firms, the results show bi causality between costs and sales revenues; thus target costing is possibly corroborated but within a feedback mechanism. Survey results, based on self-reported data and again on a smaller sample, show mixed results. The relationship between target costing and the intensity of competition seems moderately corroborated by the survey results. This paper contributes to the literature by employing a unique mixed methods research approach, to the best of our knowledge not found previously in the literature, and by its findings on the adoption of target costing by manufacturing firms in a relatively open and dynamic economy such as the UAE.

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Forage-Based Heifer Development Program for North Florida

EDIS ◽

10.32473/edis-ag424-2018 ◽

2018 ◽

Vol 2018 (5) ◽

Author(s):

Jose C.B. Dubeux ◽

Nicolas DiLorenzo ◽

Kalyn Waters ◽

Jane C. Griffin

Keyword(s):

Development Program ◽

Warm Season ◽

Beef Cows ◽

Good News ◽

Cool Season ◽

Beef Industry ◽

Performance Targets ◽

Grazing Systems ◽

Heifer Development ◽

Reducing Costs

Florida has 915,000 beef cows and 125,000 replacement heifers (USDA, 2016). Developing these heifers so that they can become productive females in the cow herd is a tremendous investment in a cow/calf operation, an investment that takes several years to make a return. The good news is that there are options to develop heifers on forage-based programs with the possibility of reducing costs while simultaneously meeting performance targets required by the beef industry. Mild winters in Florida allows utilization of cool-season forages that can significantly enhance the performance of grazing heifers. During the warm-season, integration of forage legumes into grazing systems will provide additional nutrients to meet the performance required to develop a replacement heifer to become pregnant and enter the mature cow herd. In this document, we will propose a model for replacement heifer development, based on forage research performed in trials at the NFREC Marianna.

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