ABSTRACT
Citizen, founded in 1930, was the world's largest watch manufacturer, producing over 146 million units in 1990. Citizen comprised Citizen Watch Company, Ltd., which was responsible for manufacturing, and Citizen Trading Company, Ltd., which was responsible for marketing and sales. From about 1970 to 1990, the watch industry underwent a number of significant changes. The Tanashi plant, built in 1935, was Citizen's primary watch movement manufacturing facility. Located in a suburb of Tokyo, it was responsible for producing approximately 20% of all watch components and all domestic watch movement assembly. The cost management system at Tanashi was originally installed in 1964, and was continually updated over the next 25 years to adapt to changing conditions in the production areas. The cost-reduction program at Citizen encompassed the entire production chain, including subsidiaries and outside suppliers. For subsidiaries, the firm knew the material, labor, and overhead content of the purchased parts or subcomponents.
