ABC was a medium-sized Hong Kong-based company withtwo manufacturing plants in China, one in Dongguan and the other inShanghai with employees of 3,000. The company was manufacturingmicro-were ovens in three different product lines including oven-P,oven-Q & oven-R series.While P & Q models were for itsdomestic customers, R models were designed for its overseasclients. The three product lines were targeting at differencemarket segments. 40% of their components were nevertheless sharedamong the three product series and 60% of the components werecommon to P & Q models.Basically,the components were dividedinto several categories including the casing,the heater,the glassfront door, the electronic control, the
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