Transfering Target Excellence Overseas: Toward a Conceptual Framework of Global Target Cost Management

Abstract

Target cost management(TCM) has become a significant issue in off-shore bases of Japanese corporation in line with globalization of product development functions in recent years. This article, instead of discussing " whether it is transferable or not", discussions will mainly focus on the perspective "under what system shall the implementation of TCM activities be done effectively in carrying out joint developments and designing. The followings are discussions to review furtherance of global cooperation, the need to consider the shift from "transfer to overseas" to "overseas expansion" , overseas development of co-design, and also rules of TCM in categories of philosophy, principles, and implementation rules. Also, it includes a preparatory trial to establish a conceptual framework by focusing at the person responsible for TCM as a coordinator ( a "hinge"). In performing global cooperation of product development between a corporate headquarters in Japan and overseas bases, its success will depend on who takes charge of functions as a coordinator or a "hinge" . A product manager plays a key role as a hinge among local corporations, but a cost engineer also plays an important role. Whereas in Europeart and US corporations, the role of a hinge is assigned to an individual, under whose responsibility and authority the function of coordination is performed.