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Target Cost and its Role in Cost Reduction and Product Development )And Applied in Engineering Industrial Companies(


*Khaleel Radhi Hasan Alzlzly
Abstract

The objective of the research is to highlight the role of the target cost in the industrial projects represented by Al Muthanna Cement Plant and Samawa Cement Factory in particular, and in some developed countries in general. Where the main objective of the research is achieved through the following sub-goals, The conceptual framework of the target cost system, its concept, objectives and principles, Study the advanced management and productivity systems that help the target cost system to achieve its objectives, Benefit from the experience of some projects used for this system, especially Japanese projects, An applied study was conducted on the cement plants in Muthanna which have large capital and the extent of their application to the target cost system. The data were collected using the questionnaire and some personal interviews were conducted. The data were then tested using a set of descriptive statistical methods, Frequency, arithmetic mean, standard deviation), for the purpose of testing the correctness of the following research hypotheses: There is a possibility to apply the target cost system in some engineering and industrial projects. The target cost system leads to reduced costs for products in industrial projects. Target cost system provides important information to help in engineering product development. The research was divided into three sections: The first topic dealt with the theoretical framework of the target cost system. The second topic dealt with the systems that help the target cost system in reducing costs and engineering product development. In the third part, the field of study was concentrated in the Muthanna Cement Factory and Samawa Cement Factory. A questionnaire was conducted to determine the degree of acceptance and application of the hypotheses above by using the five-dimensional Likert scale and statistical analysis of the questionnaire using the statistical (SPSS) program to determine the suitability of the hypotheses for the application. At the end of the research, some conclusions were reached and some recommendations were made to implement the target cost system.

Volume 11 | 02-Special Issue

Pages: 287-297