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

Target cost management(TCM) has become a significant issue in off-shore bases ofJapanese corporation in line with globalization of product development functions inrecent years. This article, instead of discussing " whether it is transferable or not",discussions will mainly focus on the perspective "under what system shall theimplementation of TCM activities be done effectively in carrying out jointdevelopments and designing. The followings are discussions to review furtherance ofglobal cooperation, the need to consider the shift from "transfer to overseas" to"overseas expansion" , overseas development of co-design, and also rules of TCM incategories of philosophy, principles, and implementation rules.Also, it includes a preparatory trial to establish a conceptual framework by focusingat the person responsible for TCM as a coordinator ( a "hinge"). In performing globalcooperation of product development between a corporate headquarters in Japan andoverseas bases, its success will depend on who takes charge of functions as acoordinator or a "hinge" .A product manager plays a key role as a hinge among local corporations, but acost 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 andauthority the function of coordination is performed.