kaizen costing used for management of resources to achieve the cost effective output

1. Kaizen Costing Kai Zen
Change Good or Improvement
 Small Continuous change for Improvement.
 Kaizen is small incremental changes made for improving
productivity and minimizing wastes.
Kaizen Costing is a method of reducing managing costs. The method
is aimed at cost reduction but without negative effects on the quality,
staff & safety.
This is similar to Target Costing where managers try to achieve the
result with lower resources. However Target Costing is used on
Design stage, while Kaizen Costing during the manufacturing stage.
 Kaizen is Japanese word.

2. Approach of Kaizen Costing
 There are two approach to Kaizen Costing:
i. Organisation Specific
ii.Product Specific

3. The main types of costs that should be reduced are:
a.Working with supplier to reduce cost in supply
chain.
b.Costs of product redesign.
c.Waste.
d.Legal costs.
e.Recruitment & Training costs.
f. Marketing & sales.

4. Kaizen Costing Process
1.Involves your employees.
2.Find problems
3.Think and find solutions
4.Implementation
5.Check
6.Standardize
7.Repeat

5. Advantages of Kaizen Costing
 Customer Satisfaction
 Forming work teams
 Continuous Improvement
 Creates Better work environment
 Problem solving
 Widely applicable
 Reduces wastage

6. Evaluation
1.What is Kaizen Costing? What are the types of
Kaizen Costing?
2.What are the types of costs that can be reduced
through Kaizen Costing?
3.What are the advantages of Kaizen Costing?
4.What is the process of Kaizen Costing?