8.2 The Use of Target Costing in Developing the Mercedes-Benz M-Class

1. 8.2 The Use of Target Costing in Developing the Mercedes-Benz M-Class 8.2發展中的Mercedes-Benz M系列 目標成本法的應用 學生: Ma0a0204 王詩婷 Ma0a0101 葛雅婷 Ma0a0105 陳欣妤

2. http://www.mercedes-benz.com.tw/content/taiwan/mpc/mpc_taiwan_website/twng/home_mpc/passengercars/home/new_cars/models/m-class/w166.flash.htmlhttp://www.mercedes-benz.com.tw/content/taiwan/mpc/mpc_taiwan_website/twng/home_mpc/passengercars/home/new_cars/models/m-class/w166.flash.html

3. Executive Summary 內 容 摘 要

4. Target costing techniques are important tools for controlling costs in the early stages of product development. • This article describes how Mercedes-Benz used target costing in the design and production of the M-class , a new sports utility vehicle. • 在產品研發的早期階段，目標成本法是控制成本的重要發展。 • 本文介紹在設計和生產M系列，Mercedes-Benz如何使用目標成本法，M系列是一個新的運動型多功能車。

5. Mercedes' marketing research showed that customers in this market segment hold established expectations about product characteristics and price levels. • This marketing information was used to design a vehicle with the characteristics that customers wanted, at a selling price that customers would pay, and that would produce an acceptable level of profitability for investors. • Mercedes公司市場研究表明，關於產品特色和價格水平，在這市場領域的客戶抱有既定的期望。 • 這市場資訊被用來設計出特色車輛，客戶想要願意支付的銷售價格，並為投資者產生一個可接受的獲利水平。

6. Target costing systems have three major characteristics (Cooper, 1995): • Targets for price, quality, and function are set in advance. • Major costs are identified in the design phase. • The approach is multifunctional. 目標成本法系統有三個主要特點（Cooper，1995）： • 目標的價格、品質和功能是預先設置的。 • 主要成本都在計畫階段確定。 • 該方法是多功能的。

7. To develop the M-class, Mercedes used multifunctional teams that included product and process engineers, marketing professionals, and suppliers. The company held focus groups to help define features that potential customers expected to see in a sports utility vehicle from Mercedes. 為了開發M系列，Mercedes使用多功能團隊，其中包括產品和製程工程師，市場行銷專業人員和供應商。公司所持有的重點團隊來幫助明確的功能，期望潛在客戶注意來自Mercedes的運動型多功能車。

8. Target costing was a logical cost management technique for Mercedes to use because the company was designing a completely new vehicle and concurrently constructing a new production facility. As a result, Mercedes could define a significant portion of the production costs that would be incurred before the costs were actually committed. Mercedes使用目標成本法是一個合理的成本管理方法，因為該公司正在設計一種全新的車款，同時建造新的生產設備。其結果是Mercedes可以確定將之前發生的成本，實際上是致力於重要的生產成本。

9. Success At Target Costing 目標成本法的成功

10. Successful implementation of target costing principles requires managing many interrelated components, including the following (Ansari and Bell,1997 ) • Price-led costing, • Customer orientation, • Focus on product and process design, • Cross-functional teams, • life-cycle cost reduction, • Value chain involvement , 成功實施目標成本的原則，需要管理許多相互關聯的組成，其中包括以下內容（Ansari and Bell，1997年) • 價格主導成本計算 • 以客戶為導向 • 專注於產品和流程設計 • 多功能型團隊 • 生命週期成本的降低 • 價值鏈的介入

11. Price-led costing. In many industries, pricing has traditionally been a function of cost. Markups, or profit margins, are simply added to the estimated cost of a product to set an initial market price. If customers reject a price determined in this manner, producers have little recourse other than to reduce their margin, though they can also attempt to trim production costs. 價格主導成本計算。在很多行業，定價一向是成本的功能。標記或利潤空間，簡單的產品到一個初始市場價格設置的估計成本。如果客戶拒絕以這種方式決定價格，生產者毫無其他辦法，減少自己的利潤，但他們也可以嘗試削減生產成本。

12. Target costing practices treat selling prices and margins as uncontrollable variables, because the markets determine selling prices, and companies must earn adequate margins to remain in business over the long term. Thus, cost is the only variable that can be influenced by management. 目標成本法的做法把銷售價格和利潤視為無法控制的變數，因為市場決定銷售價格，和公司在長期的繼續經營下，必須賺取足夠的利潤。因此，成本是唯一的變數，可受管理階層的影響。

13. Customer orientation. Delivering products customers want at a price they are willing to pay is a fundamental premise " of target " costing. Lean enterprises survive by gaining a series of short-term advantages over their competitors in one of three customer-oriented variables (the survival triplet) (Cooper,1995) 以客戶為導向。提供客戶願意支付產品的價格，是“目標”成本的一個基本前提。精實企業的生存，獲得一系列的短期優勢，在一個以客戶為導向的三個變數，超過其競爭對手。(the survival triplet) (Cooper,1995)

14. Price, • Quality, • Functionality, Ultimately consumers determine minimum acceptable standards for quality and functionality and they define a maximum acceptable market price. • 價格 • 品質 • 功能 最終消費者確定可接受最低的品質和功能及他們明確的一個最大可接受的市場價格標準。

15. Short-term competitive advantage can be gained by managing the elements of the competition. For example, competitive advantage can be gained if a company can deliver comparable quality and functionality at a price significantly below that of its competitors. Similarly, a company can also gain a competitive advantage by providing greater functionality, higher quality, or both at comparable prices. 可以透過管理的競爭要素，獲得短期的競爭優勢。例如，如果一家公司，在價格顯著低於其競爭對手時，可以提供同等的品質和功能，增加競爭力的優勢。同樣，公司還可以提供更多的功能，更高的品質，或按兩者相似價格計算，獲得競爭優勢。

16. Focus on product and process design. Many production costs derive from decisions made during the design phase. Consequently, cost-reduction efforts should focus on phases before production begins. Mercedes, for example, made decisions early in the product-development process to reduce the level of value-added (or conversion) activities and costs within its planned facility. 專注於產品和流程設計。許多生產成本來自設計階段所作出的決定。因此，努力降低成本，應該集中於生產階段之前的階段。例如Mercedes，在產品開發過程前作出決定，水平降低附加價值（或轉換）活動和在其計劃中的設備成本。

17. Traditionally, purchased components have made up from 55% to 60% of unit production costs at Mercedes, which means that value-added percentages have ranged from 40% to 45%. During the product- and process-design phase for the M-class , Mercedes made the strategic decision to rely heavily on systems suppliers. As a result, the value-added percentage in the new plant where the M-class is made is only 20% to 25% of manufacturing cost. 傳統上，從Mercedes單位生產成本的55％至60％採購零件，這意味著增值百分比為40％至45％不等。在M系列產品和流程設計階段，Mercedes策略決策嚴重依賴於系統供應商。其結果是，其中新工廠的M系列，只有增值百分比為20％至25％的製造成本。

18. Cross-functional teams. Target costing begins with customer needs. It should end with a product that meets or exceeds customer expectations. For this to happen, however, a wide variety of professional expertise is required. At Mercedes the cross-functional design team included cost planners, design engineers, systems suppliers, and marketing professionals had to coordinate their work to enhance quality and control costs. 　　跨功能型團隊。目標成本最終來自於客戶的需求。在最終的產品，以滿足或超過顧客的期望。為了做到這一點，各種各樣的專業知識是必需的。在Mercedes的跨功能型團隊包括成本規劃師、設計工程師、系統供應商和市場行銷專業人士，其必須協調其工作，以提高品質和控制成本。

19. Life-cycle cost reduction. Target costing also encourages designers to consider costs that extend beyond the manufacturing stage. Because target costing principles are customer-oriented, design decisions should seek to minimize both manufacturing costs and the ownership costs that customers will incur. 生命週期成本的降低。目標成本鼓勵製程工程師考慮以超出製造階段的成本。因為目標成本計算原則是以客戶為導向，設計決策應設法儘量減少製造成本和客戶會承擔的擁有成本。

20. For example, although the Mercedes E300 diesel has a relatively high sticker price, it is the choice of many European cab companies because its maintenance costs are low, and its life commonly exceeds 300,000 miles. Lower operation costs during the vehicle's useful life and higher resale values are examples of life cycle cost-reduction strategies affected by engineering design choices. 例如，雖然Mercedes E300柴油具有相對較高的售價，但是是許多歐洲出租車公司的選擇，因為它的維護成本也較低，其壽命通常超過30萬英里。在汽車的使用壽命和更高的轉售價值，降低營運成本，生命週期成本削減的策略影響工程設計選擇。

21. Value chain involvement. Target costing principles stress the importance of managing costs throughout the value chain. Involving " upstream " suppliers early in development is crucial. Involving suppliers early during the design phase helped Mercedes improve quality and reduce costs. " Downstream " input－the involvement, for example, of the marketing and customer service departments－is also necessary to achieve the strategic benefits of target costing. 價值鏈的介入。目標成本的原則，強調整個價值鏈管理成本的重要性。涉及“上游”供應商早期開發是至關重要的。早在設計階段涉及到供應商，說明Mercedes提高產品品質和降低成本。“下游”的投入參與，例如，市場行銷和客戶服務部門，也是有必要實現策略目標成本的利益。

22. Background Of The Mercedes M-Class Project Mercedes M系列工程計劃的闡述

23. To explain how Mercedes used target costing techniques in developing the M class, the following sections discuss each of the major target costing characteristics mentioned previously. Also discussed are innovations Mercedes developed, which include various indexes that explicitly link engineering and financial concepts. 為了解釋Mercedes如何使用目標成本開發M系列的技術，以下各節討論前面提到的主要目標成本的特點。還討論了Mercedes的創新開發，其中包括各項指標明確聯繫工程和財務概念。

24. Background. In the early 1990s, Mercedes struggled with problems in product development, cost efficiency, material purchasing, and adaption to changing markets. By 1993 Mercedes had experienced its worst sales slump in decades, and it lost money for the first time in its history. Since that time, Mercedes has streamlined its core business, reduced parts and system complexity, and established simultaneous engineering programs with suppliers. 背景。在1990年代初期，Mercedes競爭在產品開發、成本效益、材料採購和適應不斷變化的市場問題。在1993 年Mercedes經歷數十年來最嚴重的銷售低迷，其歷史上第一次虧錢。 自那時起，Mercedes精簡其核心業務、減少了零件和系統的複雜性，並建立與供應商的同步工程計劃。

25. New products. In a search for additional market share, new segments, and new niches, Mercedes started developing a range of new products. The new C-class debuted in 1993, the E-class in 1995, the new sportster SLK in 1996, and both the A-class and the M-class All Activity Vehicle in 1997. Perhaps the largest and most radical of all the new projects was the M-class. 新產品搜索更多的市場分類、切割新市場和新的利基市場，Mercede開始制定一系列新產品。在1993年推出的新C系列，E系列於1995年，新的SPORTSTER SLK於1996年，A系列和M系列所有活動車輛於1997年。也許最大的和最根本的是所有新專案M系列。

26. In April 1993, Mercedes announced it would build its first passenger vehicle manufacturing facility in the United States. The decision emphasized the company's globalization strategy and desire to move closer to customers and markets. After an intensive, six-month effort to evaluate locations suitable for a new plant costing $300 million, Mercedes chose Tuscaloosa County, Alabama. annual production at the plant is how about 65,000 vehicles, with North American and export volumes approximately equal. 1993年4月，Mercedes宣布將在美國建立第一客運車輛製造工廠。決定強調公司的全球化策略和對客戶和市場靠攏的願望。密集六個月後的努力，以評估適合耗資3億美元的新廠房的位置，Mercedes選擇Tuscaloosa County, Alabama。工廠的年度生產是如何約 65,000輛，與北美出口量大致相等。

27. The M-class project can justifiably be called a radical, high-stake experiment (Woodruff and Miller, 1995). Mercedes had to build a new factory in a new country and also develop a new product for a new marker segment. While Japanese manufacturing plants built outside Japan typically copy Japanese factories and models (at least at first), Mercedes simultaneously had a new work force. During the early stages of products and process development, the popular press described the Mercedes venture as a prescription for disaster because of the many variables and unknowns involved. M系列專案有理由可以被稱為一個激進的、高風險的實驗(Woodruff and Miller, 1995)。Mercedes在一個新的國家必須建立一個新的工廠，並開發新產品為新的標記部分。雖然在日本以外的製造工廠，一般是複製日本工廠和模型(至少一開始是如此)，Mercedes同時擁有新的工作主力。產品和流程發展的早期階段，大眾媒體稱Mercedes企業為一個災難處方，因為許多變數和所涉及的未知數。

28. The M-Class Project Phases M系列各階段專案

29. The M-class moved from concept to production relatively quickly. The concept phase began in 1992, which led to a feasibility study that the board of directors approved. The project realization phase began 1993. Finally, production began in 1997. Key elements of these various phases are described next. 如M系列從概念移到生產相對較快。概念設計階段開始於1992年，董事會批准的可行性研究報告。專案實現階段開始於1993年。最後，於1997年開始生產。下面描述這些不同階段的主要要素。

30. Concept phase (1992-1993). The cross-functional team at Mercedes compared the company's existing product line with various market segments in order to find opportunities to introduce new types of vehicles. The analysis revealed opportunities in the rapidly expanding market for sports utility vehicles, dominated by Jeep, Ford , and GM. 概念階段（1992-1993年）。 Mercedes的跨功能型團隊比較，該公司現有的產品線，在不同的細分市場，以便找到引進新類型車輛的機會。分析結果顯示的機會為，運動型多功能車的市場在迅速擴大，Jeep, Ford , and GM佔主導地位。

31. The team conducted market research to estimate potential sales opportunities worldwide for a high-end sports utility vehicle having the characteristics of a Mercedes-Benz. A rough cost estimate was developed that included materials, labor, overhead, and one-time development and project costs. Then cash flows were projected and analyzed over a 10-year period. Net present value (NPV) analysis was used to acquire approval of the project from the board of directors. Because of the capital-intensive nature of the automobile manufacturing industry, estimates of production volume are critical factors in the NPV calculation. 團隊進行市場調查研究，以估計全球Mercedes-Benz運動型多功能車的特點，潛在高消費階層的銷售機會。一個粗略的成本估算的開發，包括材料、勞動、開銷和一次性開發的項目成本。現金流量進行了預測和分析，超過10年的時間。淨現值 (NPV) 分析被用來獲取該專案從董事會的核准專案。由於汽車製造業的資本密集性質，淨現值計算估計生產量的關鍵因素。

32. Risks and opportunities. The sensitivity of the NPV calculation was analyzed by simulating various " what-if "scenarios involving different risks and opportunities. The risk factors that were tested included fluctuations in monetary exchange rate, different sales levels due to consumer substitution of M-class vehicles for other Mercedes products, and product and manufacturing costs that differed from projections. 風險和機會。NPV 的計算的敏感性分析通過模擬各種“假設”方案涉及不同的風險和機會。風險因素進行了測試：包括貨幣匯率的波動，不同的銷售水平，由於消費者替代Mercedes M系列的其他產品，從不同的產品和製造成本預測。

33. Based on the economic feasibility study of the concept phase, the board approved the project. The search for manufacturing locations included sites in Germany, other European countries, and the United States. Partly because of Mercedes globalization strategy, the decisive factor in placing the plant in the United States was the desire to be close to the biggest market for sports utility vehicles. 基於經濟可行性研究報告的概念階段，董事會核准的專案。製造地點搜索包括在德國、 其他歐洲國家和美國的網站。部分原因是因為Mercedes的全球化策略，將在美國工廠的決定性因素，是希望接近運動型多功能車的最大市場。

34. project realization phase (1993-1996). The target costing process requires broad, cross-functional activities to acquire market information necessary to develop a new vehicle. Mercedes used customer focus groups to obtain this information. The company held regular customer clinics to explain the new vehicle concept and to view the prototype. 如專案實現階段 (1993-1996 年)。目標成本計算過程要求廣泛、多功能型部門的活動，以獲得必要開發新車的市場訊息。Mercedes客戶焦點組用於獲取此資訊。公司定期舉行客戶講授，解釋及查看新車概念的雛形。

35. These clinics elicited important information about how the proposed vehicle would be received by potential customers and the press. Customers were asked to rank the importance of various characteristics including safety, comfort, economy, and styling. Engineers organized in function groups designed systems to deliver these essential characteristics. 這些講授引起了建議，車輛如何受到潛在客戶和媒體新的重要資訊。客戶要求的各種特性，包括安全性、舒適性、經濟性和造型的排名的重要性。工程師組織功能團體設計的系統中，提供這些基本特性。

36. Furthermore, Mercedes would not lower its internal standards for components, even if initial customer expectations were lower than the Mercedes standard. For example, many automotive expert believe the handling of Mercedes products results from manufacturing a world-class chassis. Thus, each new class within the Mercedes line must meet strict standards for handling, even though these standards may actually exceed customer expectations for some classes. 此外，Mercedes也不會降低其內部的標準要素，即使最初客戶的期望低於Mercedes的標準。例如，許多汽車專家認為Mercedes的產品處理製造世界一流的主機殼產品結果。因此，Mercedes每一個新系列，必須符合嚴格的標準進行處理，儘管這些標準可能實際上超過了一般客戶的期望。

37. Mercedes did not use target costing to produce the lowest-priced vehicle in an automotive class. Rather, the company's strategic objective was to deliver products that were slightly more expensive than competitive models but with a greater perceived value on the part of the customer. Mercedes沒有使用目標成本，來生產汽車系列中價格最低的汽車。相反，該公司的策略目標是，提供的產品比具競爭力的車型昂貴，但對部分客戶具有更大的認知價值。

38. Goal-oriented approach. Another difference between Mercedes' and other companies' use of target costing lies in the goal-oriented approach to achieving target cost. Cooper cites examples of Japanese companies that strive in a single-minded effort to achieve a static target cost. In contrast, the M-class (and M-class target cost) remained alive throughout the product realization phase because of changing dynamics. 以目標為導向的方法。Mercedes公司和其他公司的目標成本之間的另一個區別在於，以目標為導向的方法來實現目標成本。Cooper舉例的日本公司，一心一意地在努力實現靜態目標成本。相比之下，M系列（M系列目標成本）現況仍然持續改變在整個產品實現階段。

39. Mercedes found it beneficial to place the design and testing team members in close physical proximity to other functions within the project to promote fast communication and decision making. In this way the company was able to respond quickly to changing conditions. For example, while the vehicle was under development, the market moved toward the luxury end of the spectrum. Crash test results were also incorporated into the evolving M-class design. Mercedes發現其有利於將設計和測試團隊成員，在項目中的其他功能，自然而然接近以促進快速的溝通和決策等功能。透過這種方式，公司能夠快速回應不斷改變的條件。例如，雖然在正在開發的汽車，市場移向奢侈品極端的情況。碰撞測試結果也納入不斷變化的M系列的設計。

40. In addition, Mercedes developed new technical features such as side airbags. ( The decision to include this new feature on all Mercedes lines was made at the corporate level because experience has shown that customers' reactions to a vehicle class can affect the entire brand.) As demonstrated above, Mercedes recognized the importance of flexibility in setting and achieving target costs. 此外，Mercedes開發了新的技術功能，如乘客側安全氣囊。(包括所有的Mercedes這項新功能，因為經驗顯示客戶對汽車系列的反應會影響整個品牌。） 正如上文所述，Mercedes 明確於彈性制定和實現目標成本的重要性。

41. Production phase 1997-present. The M-class project was monitored by annual updates of the net present value(NPV) analysis. In addition, a three-year plan (including income statements) was prepared annually and reported to the headquarters in Germany. Monthly departmental meetings were held to discuss actual cost performance compared with standards developed during the cost estimation process. Thus, the accounting system served as a control mechanism to ensure actual production costs conformed to target (or standard) costs. 1997年至今生產階段。 M系列專案每年分析監測更新的淨現值（NPV）。此外，三年的計劃（包括損益表）每年編寫並向在德國的總部報告。每月舉行部門會議來討論實際成本與標準制定過程中的成本估算過程。因此，會計制度扮演控制機制，以確保符合成本目標（或標準）的實際生產成本。

42. Target costing and the M-CLASS 目標成本法與運動型多功能車Ｍ系列

43. The target costing process was led by cost planners who were engineers, not accountants. Because the cost planners were engineers with manufacturing and design experience, they could make reasonable estimates of costs that suppliers would incur in providing various systems. Also, Mercedes already owned much of the tooling , such as dies to form sheet metal, used by suppliers to produce components. Tooling costs are a substantial part of the one-time costs in the project phase. 目標成本法過程中領導成本規劃為工程師而不是會計師。因為成本規劃具有製造和設計經驗的工程師，其可以對供應商提供各種系統所產生的成本做出合理的估計。此外，Mercedes已經擁有了很多的器具，如由薄金屬板做的模具，是利用供應商來生產零件。模具成本在計劃階段的一次性成本中佔相當重要的部份。

44. Mercedes divided the vehicle into function groups that included doors, sidewall and roof, electrical system, bumpers, powertrain, seats, heating system, cockpit, and front end. As shown in Exhibit 1, the process of achieving target cost for the M-class began with an estimate of the existing cost for each function group. Next, components of each function group were identified with their associated costs . Mercedes劃分車子是以功能群組，包括門、輪胎壁和車頂、電氣系統、保險槓、動力傳動系統、座椅、暖氣系統、駕駛座艙和前蓋。圖1所示，達到M系列(運動型多功能車)目標成本的過程中, 開始估計每個功能群組現有的成本，然後，確定每個功能群組零件的相關費用。

45. Team members set cost reduction targets by comparing the estimated existing cost with the target cost for each function group. Finally, cost reduction targets were established for each component. As part of the competitive benchmarking process, Mercedes purchased and disassembled competitors' vehicles to help understand costs and manufacturing processes within the competitor's manufacturing plant. 團隊成員設定了降低成本的目標，透過比較每個功能群組中所估計現有成本與目標成本。最後，降低成本的目標建立在每個零件。如同經由競爭的標桿分析法過程的一部份，Mercedes購買和拆卸競爭對手的車輛以幫助了解競爭對手製造工廠內部的成本和製造過程。

46. A modular construction process that relied on high-value-added systems suppliers was used to produce the M-class. Advantages of this process include higher quality, shorter development provide entire systems rather than individual parts or components. For example, the entire cockpit was purchased as a unit from an external vendor. 基準的製造過程中依靠高附加價值系統的供應商用於生產M系列(運動型多功能車)。這過程的優勢包括高品質，縮短了開發提供完整的系統而不是個別的零件或組件。例如，整個駕駛座艙為一套裝置是從外部供應商購買而來的。

47. Systems suppliers were part of the development process from the beginning of the project. Approximately 70 suppliers worked with teams from finance and controlling, engineering, purchasing, marketing, sales, logistics, and quality control to ensure the delivery of systems that meet expectations. Mercedes expected suppliers to meet established cost targets. To enhance function group effectiveness, suppliers were brought into the discussion at an early stage in the process. 系統供應商從該計劃開始發展過程中的一部分。大概有70個供應商的工作團隊從財務和控制、工程、採購、行銷、銷售、物流和品質控制，以確保交付的系統符合所預期的。Mercedes預計的供應商以符合既定的成本目標。為了提高功能群組的有效性，供應商被納入討論是處於初期階段的過程中

48. Index development to support target costing. During the concept development phase, Mercedes team members used various indexes to help determine critical performance, design , and cost relationships for the M-class. The purpose of the indexes is to ensure that resources are applied in the most effective manner. 指標發展以支持目標成本。在概念發展階段，Mercedes團隊成員利用各項指標以幫助決定運動型多功能車關鍵的性能、設計和成本之間的關係。指標的目的是確保資源被最具效益的方式應用。

49. An importance index is created by to conceptually linking the contribution of each major function group to an attribute desired by a customer. In the final stage of analysis, the value of each function group is compared with its cost. Thus, engineers can assess cost/benefit relationships during the design phase. 一個重要的指標是建立在概念上連結每個顧客所期望的主要功能群組特性。在分析的最後階段，每個功能群組的價值與其成本進行比較。因此，在設計階段工程師可以評估成本/利益關係。

50. Exhibit 1. function groups of the mercercedes-BENZ M-CLASS sport utility vehicle 圖1. 功能群組為中華賓士、運動型多功能車