Komatsu, a leading manufacturer of construction equipment, is looking to expand aggressively in 1990. The key to its competitiveness is the strict observance of standard costs throughout the product development process. Komatsu holds several design-for-manufacturability cost of research to ensure the profitability of the product, sets target costs for suppliers, and uses methods to reduce costs, if necessary. Because this is an important element of the design and manufacturing processes, the target value of Komatsu in the system is central to the plans of the company for growth, globalization and diversification. "Hide
by Robin Cooper Source: Harvard Business School 11 pages. Publication Date: March 17, 1994. Prod. #: 194037-PDF-ENG
Related Case Solutions & Analyses:
AirAsia India: Clash for the Indian Skies
Global Carbon Emissions: An Interactive Illustration
Solving the Problems of New Product Forecasting
Video-Cats: Wireframing and Prototyping
Brink’s Company: Activists Push For A Spin-Off
Dragonfly Corporation
Lyric Dinner Theater (B)
Peter Jepsen
China’s Renminbi: “Our Currency, Your Problem”?
China: To Float or Not to Float? (F): Alcatel and Strong Chinese Competition
