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Journal of Management and Business Research, 2004
21( 4 ):515-530
DOI: 10.6504/JOM.2004.21.04.06
Title
Interdepartmental Interaction Effects on Cost Reduction Performance in Product Development Organizations – Empirical Research in Japanese Industries –
Author
Abstract
This research emphasizes the relationship of interdepartmental interaction and cost reduction performance in product development organization. The 518 companies surveyed in this study belonged to four types of industry listed on the Tokyo Stock Exchange in 1996. First, this study shows empirically interactive control effects between product projects and functional departments during the product development cycle. Second, it investigates interdepartmental interaction effects in alternative product development organizations. Some evidence indicates that the multi-centered structure of product development could improve interdepartmental interaction and multi-project coordination. In addition, simultaneous engineering by interdepartmental interaction could be helpful in effective achievement of target costing objective during product development processes. It also indicated that simultaneous functional structures should be established from the “product conceptualization” stage of product development processes for high cost reduction performance.
Key Words
Multi-centered Structure, Interdepartmental Interaction, Multi-project Coordination, Target Costing, Stimultaneous Engineering
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