Target Cost Management at Build to Order Manufacturing Company

Abstract

In the 1990’s and thereafter, significant research and many studies were conducted for Target Cost Management in lot-production systems. These Target Cost Management research and studies focused on target costs and/or standard costs under lot production systems and such studies are considered unsuitable for small-to-mid size companies or Build-to-Order manufacturing system that requires specific engineering work for each order.The aim and purpose of this study is to present the following points:・How Target Cost Management is conducted and performed at a Build-to-Order manufacturing company under a Total Cost Management System.・Methods to overcome and avoid conflict or minimize issues arising from conventional Target Cost Management.・An integrated system to proactively work for corporate management.