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 Kaizen costing is a system of cost reduction
via continuous improvement.
 It tries to maintain present cost levels for
products currently being manufactured via
systematic efforts to achieve the desired cost
level.
 The word kaizen is a Japanese word
meaning continuous improvement.
1- Involves your employecs.
2- Find problems
3- Think and find solutions
4- Implementation
5- Check
6- Standardize
7- Repeat
 Cost Can be reduced through estimation of
seven types of waste:
 over production
 lnventory
 Waiting
 Defective
 Motion
 Transportation
 Over Processing
 Customer Satisfaction
 Process Centered
 Create Work Teams
 Cross-functional
 Increasing Employees Moral
 Reduced Errors
 Promote openness
 Acknowledge Problems
 Requires Permanent change of Management
System
 Does not Produce Required Results
 Difficult to Convince People
THANK YOU

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SCM-426.pptx

  • 1.
  • 2.  Kaizen costing is a system of cost reduction via continuous improvement.  It tries to maintain present cost levels for products currently being manufactured via systematic efforts to achieve the desired cost level.  The word kaizen is a Japanese word meaning continuous improvement.
  • 3. 1- Involves your employecs. 2- Find problems 3- Think and find solutions 4- Implementation 5- Check 6- Standardize 7- Repeat
  • 4.  Cost Can be reduced through estimation of seven types of waste:  over production  lnventory  Waiting  Defective  Motion  Transportation  Over Processing
  • 5.  Customer Satisfaction  Process Centered  Create Work Teams  Cross-functional  Increasing Employees Moral  Reduced Errors  Promote openness  Acknowledge Problems
  • 6.  Requires Permanent change of Management System  Does not Produce Required Results  Difficult to Convince People