ABSTRACT
Komatsu, Ltd. was one of Japan's largest heavy industrial manufacturers. Founded in 1917 as part of the Takeuchi Mining Co., Komatsu Ironworks separated from its parent in 1921 to become Komatsu, Ltd. The product development process at Komatsu lasted two years on average. If the redesign was relatively minor, the process might take as little as six months, while complete redesigns might take as long as three years. The process contained four major stages: product planning, design, trial production, and preparation for full production. Throughout the product development process, target costs played a critical role in ensuring that the product would be profitable when released for mass production. The preliminary target costs used in the long-range development plan for major subassemblies, such as the engine, power train, and cooling system, were developed from prior experience with similar subassemblies and discussions with production and engineering.
