Publications
Publications
- March 1994 (Revised November 1994)
- HBS Case Collection
Komatsu Ltd. (A): Target Costing System
Abstract
Komatsu, a leading manufacturer of construction equipment, seeks to expand aggressively through the 1990s. Key to its competitiveness is a strict adherence to target costs throughout the product development process. Komatsu conducts several design-for-manufacturability cost studies to ensure a product's profitability, sets target costs for suppliers, and uses cost reduction techniques when necessary. Because it is a crucial element of the design and manufacturing processes, Komatsu's target costing system is central to the firm's plans for growth, globalization, and diversification.
Keywords
Citation
Cooper, Robin. "Komatsu Ltd. (A): Target Costing System." Harvard Business School Case 194-037, March 1994. (Revised November 1994.)