Presents a different theory of competition for manufacturers racing to create an innovative product at the lowest prices. This book shows that the key to success in this environment is the integrative management of cost, quality, and functionality. It also describes eight cost management techniques, including target costing and value engineering.

Part 1 The confrontation strategy: the confrontation strategy; why firms adopt a confrontation strategy; the role of the survival triplet. Part 2 The role of cost management: the hidden role of cost management; the actual role of cost management; creating the right organization; creating the right organizational context. Part 3 Managing the costs of new products: identifying future products; target costing; value engineering; inter-organizational cost management systems. Part 4 Managing the costs of existing products: product costing; operational control; Kaizen. Part 5 Harnessing the entrepreneurial spirit: creating business managers; managing firm size; when lean enterprises collide.