Read the question carefully Do not give me the same answer that this website already have Olympus Optical Co. Ltd. (A): Cost Management for Short

Life Cycle Products Robin Cooper

Case Brief Explores Olympus Optical's strategic response to major losses in its camera business. Key to Olympus's recovery were its extensive product planning process, a quality improvement program, and an aggressive cost-reduction program. In particular, the

case details Olympus's target costing system, which enabled the firm to design high- quality products at low cost.

Keywords: Cost control, Cost systems, Product design, Product development

Learning Objective

Application of Target costing to short life cycle products Impact of consumer preferences on firms costing and competitive strategies and pricing methods. Managing the interaction between price, quality, and functionality of products Assignment Questions

1. How does Olympus target costing system differ from Nissans and Komatsus systems? 2. How does Olympus reduce the cost of a camera? Is this process sustainable? 3. How can Olympus reduce unnecessary expenses and control production costs? 4. Describe Olympus new cost reduction effort.