TY - JOUR
T1 - Target cost management in japanese companies
T2 - Current state of the art
AU - Tani, Takeyuki
AU - Okano, Hiroshi
AU - Shimizu, Nobumasa
AU - Iwabuchi, Yoshihide
AU - Fukuda, Junji
AU - Cooray, Shiran
PY - 1994/3
Y1 - 1994/3
N2 - Target cost management or TCM is concerned with simultaneously achieving a target cost along with planning, development and detailed design of new products by using methods such as value engineering (VE). In this paper, we explore a wide variety of TCM practices. The first major finding is that TCM has come to be applied in process industries as well as in assembly industries. Secondly, TCM has multiple objectives of cost reduction, quality assurance, timely introduction of new products into the market, and product development to attract customers. Thirdly, simultaneous engineering is a key concept of TCM. Fourthly, adjustment between allowable costs and forecasted actual costs is a popular practice in setting target costs. Fifthly, TCM activities are monitored even during mass-production to promote continuous improvement. Lastly, co-operation with suppliers is one of the most important factors for the successful transfer of TCM to foreign subsidiaries.
AB - Target cost management or TCM is concerned with simultaneously achieving a target cost along with planning, development and detailed design of new products by using methods such as value engineering (VE). In this paper, we explore a wide variety of TCM practices. The first major finding is that TCM has come to be applied in process industries as well as in assembly industries. Secondly, TCM has multiple objectives of cost reduction, quality assurance, timely introduction of new products into the market, and product development to attract customers. Thirdly, simultaneous engineering is a key concept of TCM. Fourthly, adjustment between allowable costs and forecasted actual costs is a popular practice in setting target costs. Fifthly, TCM activities are monitored even during mass-production to promote continuous improvement. Lastly, co-operation with suppliers is one of the most important factors for the successful transfer of TCM to foreign subsidiaries.
KW - Cost tables
KW - Product development
KW - Simultaneous engineering
KW - Supplier
KW - Target cost management
KW - Transfer of target cost management
KW - VE
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U2 - 10.1006/mare.1994.1005
DO - 10.1006/mare.1994.1005
M3 - Article
AN - SCOPUS:0002895555
VL - 5
SP - 67
EP - 81
JO - Management Accounting Research
JF - Management Accounting Research
SN - 1044-5005
IS - 1
ER -