Cost Management for Pricing by Tanaka Technique (Case: An Experience from Automobile Industry)

One of the most pressing issues in today's world is minimizing production costs. Similarly, the cost management of the product to be produced occurs during the design stage; that is, the finished price of the product is determined and the design is completed with the goal of reaching this price. Given the importance and position of the automobile industry, the goal of this research is to be able to perform cost management in this industry. The "Tanaka" method was used in this descriptive-analytical model to provide an innovative model for cost management during the design phase of the automobile engine. Tanaka is a technique that exhibits the cost allocation deviation from what it should be based on what is currently happening. The research findings revealed that two pieces are worth more than their value, while the quality of several pieces has not been paid according to their value, and they cost less than their value.