“Target-Operation” Cost Management Model

2011 ◽  
Vol 204-210 ◽  
pp. 1022-1025
Author(s):  
Jing Pu Chen ◽  
Wei Wei Wang
Keyword(s):  
Control System ◽  
Cost Control ◽  
Cost Management ◽  
Full Range ◽  
Functional Modules ◽  
Target Cost ◽  
The Cost ◽  
And Control ◽  
Auxiliary Module ◽  
Operation Cost

Objective cost management and Activity-Based cost management are both more advanced cost management methods, but they are difficult to overcome their own shortcomings. In order to overcome the defects of these two methods of cost management, in the meanwhile, to find a new way to perfect the cost control system in enterprise, the writer planned to make this study. By analyzing and summarizing the domestic and international research results based on the integration of the Objective cost management and Activity-Based cost management, the writer pointed out the lack of current research and raised from the development, design, procurement, production and service to the full range of “Target-Operation” cost management, and designed three functional modules, including target cost estimate module, operation chain optimization module, cost breakdown and control module and auxiliary module to improve the model's content. This study offers a new way for the managers of enterprises in the field of cost control system and strengthening enterprise competitive power.

COMPARISON OF OWNER AND CONTRACTOR PERSPECTIVES IN ESTABLISHING COST CONTROL STRUCTURE

2019 ◽  
Vol 6 (1) ◽  
Author(s):  
Ruveyda Komurlu ◽  
Akin Er
Keyword(s):  
Control System ◽  
Control Systems ◽  
Oil And Gas ◽  
Cost Control ◽  
Control Structure ◽  
Control Function ◽  
Cost Management ◽  
Project Control ◽  
The Cost

Cost control is a part of cost management which is carried out by the project owner and the contractor throughout a project. However, the structures of the control function developed by each party generally differ since the purpose of the function and the level of the structure are not exactly the same. Contractors have several advantages while building a cost control system such as more detailed information about the project, more background, more dedicated personnel, specifically developed software etc. Therefore, contractors have a broader vision on the issue. Owners need to utilize cost control systems not only for common reasons but also due to some specific necessities. Unlike contractors, owners have to capitalize projects just before they put their investments into operation. This paper intends to focus the necessities prioritized by the owners and contractors on the issue. A comparison will be made to distinguish the differences between the cost perspectives of project owners and contractors. An assessment will be done of the matters that owners pay attention while establishing a cost control structure in light of the experiences practiced in oil and gas projects. Thus, the important points which should be better to consider by the owners' project control teams will be advised.

Project cost control: a new method to plan and control costs in large projects

2016 ◽  
Vol 22 (6) ◽  
pp. 1247-1268 ◽  
Author(s):  
R. Jayaraman
Keyword(s):  
Cost Control ◽  
Cost Management ◽  
Roll Steel ◽  
Content Type ◽  
Steel Sheets ◽  
Time Period ◽  
Salutary Effect ◽  
Long Time ◽  
The Cost ◽  
And Control

Purpose The purpose of this paper is to reengineer the process of cost management in large projects. Design/methodology/approach Considering the fact most large projects overrun their budgets because of the long time period needed to completion, it was decided to reengineer the cost management. Accordingly costs allocated to packages were reviewed and changed on a dynamic basis. Different types of contingencies were provided. Concepts of package contingency and project contingency were introduced. These were based on the project buffer and feeding buffer concepts popularised by Eliyahu Goldratt. Findings The re-engineered method of cost control worked well and yielded better than expected results, leading to the setting up of a new world record in the completion time for setting up a million tonnes per annum continuous, tandem cold rolling mill to roll steel sheets. Research limitations/implications In view of the total success of the reengineered approach, which was tested out on a large project over three years, it is felt that other projects could also try out this technique, especially since it is along the lines proposed by Eliyahu Goldratt who is an authority on project management. However the success can be better understood if the results of the testing become available. To that extent the contents of the present paper have limitations. Practical implications Large projects can deploy the methodology and complete their projects on time and under budget. Social implications The reengineering of the cost management was done primarily with a view to complete projects under budget. Since many governments spend many billions of dollars on publicly funded projects for the welfare of citizens, the use of this technique could have a salutary effect on the cost. Originality/value The method was innovated in the company by the author’s team and deployed in a live project over four years for the first time to achieve world-class results.

scholarly journals Analisis Penentuan Beban Pokok Produksi Pada Usaha Tempe Sumber Mas Jember

2018 ◽  
Vol 5 (2) ◽  
pp. 134
Author(s):  
Luqman Arif Baihaqi ◽  
Imam Mas'ud ◽  
Yosefa Sayekti
Keyword(s):  
Control System ◽  
Production Process ◽  
Production Cost ◽  
Cost Control ◽  
Total Production ◽  
Cost Of Production ◽  
The Cost ◽  
Business Cost

This study aims to find out the system of business cost control of Tempe Sumber Mas. A Controling based difference between the calculation of the cost of production with cost of production of tempe using full costing. and This research uses Descriptive by Source and Technique Triangulation. The results of this study indicate that the cost control system used by the company is still simple and the calculation of the cost of production of tempe using full costing method is greater than calculate the total production cost used in the tempe production process. Keywords: Expense, Cost of Production, Full Costing, Cost Control

Talking about the Project Cost Management

2011 ◽  
Vol 71-78 ◽  
pp. 4596-4599
Author(s):  
Bao Xia Cui ◽  
Aai Lin Zhang
Keyword(s):  
Basic Concept ◽  
Cost Control ◽  
Control Method ◽  
Cost Management ◽  
Focal Point ◽  
Project Cost ◽  
The Cost

This paper mainly analyze the cost management from basic concept, cost control method in construction and principal in cost management. The control focal point of the cost management is emphasized in every stage.

Improving the Cost Control System of Organizations Based on the Concept of Sustainable Development

Auditor ◽  
2021 ◽  
pp. 40-45
Author(s):  
Nataliya Kazakova ◽  
Lyudmila Permitina
Keyword(s):  
Sustainable Development ◽  
Control System ◽  
Production Process ◽  
Cost Control ◽  
Production Costs ◽  
Practical Significance ◽  
Control Optimization ◽  
Control Procedures ◽  
The Cost ◽  
On Farm

The article proposes the author’s two-level methodology of on-farm control based on the concept of sustainable development, which has practical significance and allows solving the problem of control, optimization of costs and production costs both at the pre-production stage and in the production process with an emphasis on control procedures for three types of costs: economic, environmental and social.

Construction Project Costs Management Research

2014 ◽  
Vol 1079-1080 ◽  
pp. 1115-1118
Author(s):  
Lu Liu
Keyword(s):  
Cost Control ◽  
Construction Project ◽  
Project Cost ◽  
Control Goal ◽  
Project Costs ◽  
Construction Project Cost ◽  
Cost Forecasting ◽  
The Cost ◽  
Cost Plan ◽  
And Control

Themain content of the construction project cost management including costforecast, cost plan, cost control. Do cost forecast, cost control goal set,must be ahead of the labor, material, cost forecasting, construction scheme ofchange of the cost forecast and the prediction of auxiliary construction cost.Cost control should follow the principle of conservation and comprehensivecontrol, there are some effective ways to realize the cost control, forexample, take organizational measures to control the project cost, take technicalmeasures to control the project cost, to take economic measures to control theproject cost, strengthen quality management and control of rework rate, etc.

Optimization Design for Petrochemical Data Operation Cost Management System

2013 ◽  
Vol 380-384 ◽  
pp. 4658-4662
Author(s):  
Hua Qing Shao ◽  
Wang Bin ◽  
Yu Hui Liu
Keyword(s):  
Management System ◽  
Optimization Design ◽  
Cost Management ◽  
Design Method ◽  
Rapid Development ◽  
Cost Management System ◽  
The Cost ◽  
Constrained Conditions ◽  
Operation Cost ◽  
Optimal Calculation

With the rapid development of petrochemical industry, it becomes an inevitable trend that petrochemical data operation cost should be controlled effectively. How to strengthen petrochemical data operation cost management has become one of the hot topics in petrochemical system. This paper presents a design method of petrochemical data cost management system based on multi-objective constraint calculation. The optimal cost control is guaranteed by using genetic algorithm for the optimal calculation solution on the constrained conditions of petrochemical data in order to achieve petrochemical data cost management task. The results of computer simulation with VC6.0 show that the system finished the cost management better and had good robustness.

scholarly journals A New Cost Management System for Construction Projects to increase Competitiveness and Traceability in a Project Environment

2021 ◽  
Vol 24 (1) ◽  
pp. 31-47
Author(s):  
Hossein Toosi ◽  
Arezou Chamikarpour
Keyword(s):  
Construction Projects ◽  
Competitive Ability ◽  
Cost Control ◽  
Control Method ◽  
Cost Management ◽  
Structured Interview ◽  
Activity Based Costing ◽  
Project Environment ◽  
Target Cost

Un nuevo sistema de gestión de costes de proyectos de construcción para aumentar la competitividad y la trazabilidad para entornos de proyectos. El objetivo principal de la investigación es utilizar nuevos métodos de cálculo de costes en los proyectos de construcción para reducir y controlar las desviaciones de costes y algunas limitaciones que presentan los modelos tradicionales. La hipótesis de la investigación se basa en la capacidad sinérgica del cálculo de costes basado en actividades centradas en el rendimiento, en combinación con el método de cálculo de costes objetivo para fomentar la competitividad del sistema de control de costes para entornos de proyectos. El método se elaboró para controlar los gastos directos y generales del proyecto durante su ejecución. Se realizó una entrevista con 26 directores financieros en dos o cuatro ocasiones entre junio de 2016 y mayo de 2017 con el fin de validar y modificar el método. Siguiendo una entrevista semiestructurada, el método propuesto contribuyó a aumentar la precisión, la certidumbre y la rastreabilidad de los costes y proporcionó la integridad del sistema contable, técnico y operacional. Además, se analizan las desviaciones y se reducen los costes al considerar las condiciones competitivas y estratégicas. También se limita el coste objetivo de los paquetes de trabajo y se genera una alerta al finalizar cada uno de ellos. Además, de acuerdo con el test de Friedman, existe una capacidad competitiva significativa en comparación con el método convencional de control de costes en los proyectos y también se aplica en un estudio de caso. This research proposed a new method for project cost management based on Competitiveness and traceability in a case study and operational situation. The research hypothesis is based on the synergistic ability of performance focused activity-based costing in combination of the target costing method for encouraging competitiveness cost control system for project environments. The method was developed to control, direct and overhead costs of the project during its progress. Also, it uses the feature of activity-driven and different resource drivers to determine the types of costs with the effect of time driver for each activity. An interview was conducted with financial managers during two to four times with the aim of validating and modifying the method. According to a semi-structured interview, the proposed method contributed to increase the precision, certainty, traceability of costs and provided the integrity of the accounting, technical and operational system. It also analyzes deviations and reduces costs by considering competitive and strategic conditions. It's also limiting the target cost of work packages and causing an alarm on the completion of each. According to Friedman test, there is a meaningful competitive ability compared to the conventional cost control method in the projects and it is also implemented in a case study.

scholarly journals Target costing

2021 ◽  
Vol 9 (11) ◽  
pp. 491-510
Author(s):  
Sanailton De Lima Dias ◽  
Francisco Tavares Filho ◽  
André Luis Korzenowski ◽  
Moisés Ozório de Souza Neto ◽  
Rafael Ramon Fonsêca Rodrigues
Keyword(s):  
Qualitative Research ◽  
Control System ◽  
Cost Control ◽  
Planning System ◽  
Target Costing ◽  
Construction Companies ◽  
Target Cost ◽  
Efficient Control ◽  
Survey Results

The implementation of a cost control system in construction companies contributes to reducing resource losses in the production process and increasing business productivity and profitability, especially when it comes to small business, which normally do not have a planning system and efficient control. Therefore, this article aims to propose a target costing model for a small construction business, concerning the efficient evaluation of its costs for the maximization of profits in proposals to provide services to public entities. A case study is used, in which data collection occurred through a questionnaire, observations of the process of preparing financial proposals, other unstructured questions, and documentary search, whose approach includes descriptive and qualitative research. The survey results revealed that the enterprise has a cost control system, but is technologically backward. Besides, the enterprise already intuitively used the concepts of target cost in preparing budgets. After evaluating the costs, a target costing model was suggested for the enterprise to use as a parameter in the bidding processes, however, it was not implemented due to the current unfavorable conditions.

scholarly journals Analysis of Budget and Cost Control of New Green Building Projects

2018 ◽  
Vol 2 (4) ◽  
Author(s):  
Jing Liu ◽  
Pengfei Wang ◽  
Tao Li ◽  
Guiquan Ma
Keyword(s):  
Cost Control ◽  
Public Awareness ◽  
Green Building ◽  
Control Measures ◽  
Environment Protection ◽  
Building Projects ◽  
The Cost ◽  
And Control ◽  
Building Engineering

With the increment of public awareness towards ecological environment protection, green building has gradually become an integral part of construction development. Green building refers to a form of architecture that conforms to the current social development form and meets the requisites of energy conservation and environmental protection. The budget and cost control of green building construction project play very important roles in improving the quality of the construction and reducing the cost of the project. This paper mainly analyzes the problems and control measures in the new green building engineering budget and cost control.

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