Our sampled companies report that even partial implementation has yielded benefits. There is no generic model which has been observed for companies to follow when implementing target costing. The existence of a structural reporting system which monitors target achievements and failures Performance rewards and evaluations based on target performance. While there are several companies with mature, productive practices, for the most part, it is in its infancy and lacks many of the key critical success factors. Organizational structures which do not support cross-functional teams Poor adherence to planned targets Lack of appropriate performance monitoring systems.
Target costing is part of a company's culture.
The exception to this was at Boeing where it was part of the team's culture, but not the overall company culture.