The document discusses the Kaizen Costing System (KCS) and its potential to provide managers with strategies for reducing production costs at different stages of a product's life cycle. KCS involves continuous, incremental improvements to manufacturing processes. It was developed by Japanese firms as an alternative to traditional costing systems that focuses on non-quantifiable factors like quality and flexibility. The study examines accountants' perceptions of whether implementing KCS would lower costs in a product's introductory, minimal batch production, and maximum batch production phases through surveys. Statistical tests were used to analyze the data and determine if relationships exist between cost reduction strategies in the different phases.
The objective of this study is to examine the effect of cost reduction techniques on profitability of manufacturing firms.
To achieve this objective, the study adopted survey design. Data were collected from the primary source. A total of
120 copies of questionnaire were administered out of which only 100were retrieved. The returned copies of
questionnaire were utilized in the data analysis of the study. Simple regression model was established and the
findings of the study indicate that there is a significant relationship between cost reduction techniques and
organizational profitability. The study concludes that the application of cost reduction techniques has improved
organizational profitability. Based on this, the study recommended that company should employ linear programming
(LP) techniques so that there would be timely purchase of raw material and component to meet production and sales
requirement. With the above recommendation, the company can achieve its goal of being ‘Low cost management’
A Project Report
On
PRODUCTIVITY IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT
Submitted in partial fulfilment of requirements
For the award of the Degree of
BACHELOR OF ENGINEERING
IN
PRODUCTION ENGINEERING
By
ABHINANDAN KUMAR
Under the guidance of
Prof. KAPIL DEV PRASAD
Department of Production Engineering
DEPARTMENT OF PRODUCTION ENGINEERING
BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RACHI
2014
Attempt to control efficiency in manufacturing aaron81462
Up until now, manufacturers have been seeking doable ways to lower costs and boost productivity in their operations. Many of them prefer reducing product quality to save production expenses, but doing so will only hurt their profitability because customers who aren’t satisfied will quit buying.
The objective of this study is to examine the effect of cost reduction techniques on profitability of manufacturing firms.
To achieve this objective, the study adopted survey design. Data were collected from the primary source. A total of
120 copies of questionnaire were administered out of which only 100were retrieved. The returned copies of
questionnaire were utilized in the data analysis of the study. Simple regression model was established and the
findings of the study indicate that there is a significant relationship between cost reduction techniques and
organizational profitability. The study concludes that the application of cost reduction techniques has improved
organizational profitability. Based on this, the study recommended that company should employ linear programming
(LP) techniques so that there would be timely purchase of raw material and component to meet production and sales
requirement. With the above recommendation, the company can achieve its goal of being ‘Low cost management’
A Project Report
On
PRODUCTIVITY IMPROVEMENT THROUGH TOTAL QUALITY MANAGEMENT
Submitted in partial fulfilment of requirements
For the award of the Degree of
BACHELOR OF ENGINEERING
IN
PRODUCTION ENGINEERING
By
ABHINANDAN KUMAR
Under the guidance of
Prof. KAPIL DEV PRASAD
Department of Production Engineering
DEPARTMENT OF PRODUCTION ENGINEERING
BIRLA INSTITUTE OF TECHNOLOGY, MESRA, RACHI
2014
Attempt to control efficiency in manufacturing aaron81462
Up until now, manufacturers have been seeking doable ways to lower costs and boost productivity in their operations. Many of them prefer reducing product quality to save production expenses, but doing so will only hurt their profitability because customers who aren’t satisfied will quit buying.
‘Six Sigma Technique’ A Journey Through its Implementationijtsrd
The manufacturing industries all over the world are facing tough challenges for growth, development and sustainability in today’s competitive environment. They have to achieve apex position by adapting with the global competitive environment by delivering goods and services at low cost, prime quality and better price to increase wealth and consumer satisfaction. Cost Management ensures profit, growth and sustainability of the business with implementation of Continuous Improvement Technique like Six Sigma. This leads to optimize Business performance. The method drives for customer satisfaction, low variation, reduction in waste and cycle time resulting into a competitive advantage over other industries which did not implement it. The main objective of this paper ‘Six Sigma Technique A Journey Through Its Implementation’ is to conceptualize the effectiveness of Six Sigma Technique through the journey of its implementation. Aditi Sunilkumar Ghosalkar "‘Six Sigma Technique’: A Journey Through its Implementation" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-8 | Issue-1 , February 2024, URL: https://www.ijtsrd.com/papers/ijtsrd64546.pdf Paper Url: https://www.ijtsrd.com/other-scientific-research-area/other/64546/‘six-sigma-technique’-a-journey-through-its-implementation/aditi-sunilkumar-ghosalkar
1
Lean Supply Chain Management
2
Table of contents
1. Introduction ............................................................................................................ 3
1.1 What is lean ……………………………………………………………………… 4
2. Why leans supply chain is needed?........................................................................ 5
3. Benefits of lean supply chain management .......................................................... 6
4. Implementation of Lean SCM: ................................................................................... 6
5. Challenges faced while implementing lean SCM: .................................................... 8
6 .Best practices that support Lean SCM process:.......................................................... 9
7. Concluding remarks................................................................................................ 11
8. References. .................................................................................................... 12
3
Lean supply chain management
1-Introduction
Supply chain is an established network of processes that starts from procurement of raw material;
conversion of raw material into final product and then distribution of that finished product to
customers. Over last two decades, the concept of lean supply chain management has gained great
importance from both academics and practitioners. To gain competitive advantages and to
survive in this dynamic environment firm are in need of delivering quality product with
minimum wastage of resources. Therefore the concept of lean Supply chain management is more
practical now a day’s then before it. Lean production is an integrated activity in SCM that is
aimed at achieving high volume production with minimum wastage of raw materials. It focuses
on improving the efficiency of processes on continuous basis, minimizing wastage and
eliminating almost all activities that does add any value in overall supply chain. Lean production
is considered a innovative way of thinking and thus it includes the integration of firms vision,
culture and strategy in such a way that it can serve the customer by providing high quality
product with in low cost and on short delivery Alabama Technology Network, 1998; Inman,
1999; Davis and Heineke,( 2005) cited by Agus& Hajinoor(2012).
Lean production is such a socio-technical system that is aimed on removing wastage by
minimizing supplier, customers and internal variability among firms operations. Lean production
is not only element that helps in achieving goals of Lean Supply Chain, it also includes product
development phase and aspects of distribution channel. Firms that want to implement LSCM
must also manage variable supply of product, processing time, demand ...
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...ijtsrd
In competitive environment lean manufacturing is necessary in every industry. Lean production is a standard manufacturing mode of the 21st century All the manufacturing industries have put a continuous efforts for its survival in these current world. In order to handle the critical situations manufacturers are trying to implement new and innovative techniques in their manufacturing process. Later on lean was formulated and developed as the solution to the fluctuating and competitive business environment. Due to rapid change in business environment the manufacturing organization are forced to face challenges and complexities in the competition. The concept of lean manufacturing was developed for maximize the resource utilization and minimize the wastes. The main focus of the lean manufacturing is to satisfy customer demands for high quality and low cost. The technique not only identifies the reasons for waste but also helps in its removal through marked principles and guidelines. Lean Manufacturing is an efficient and fast growing approach in the world of competition. Lean manufacturing utilizes a wide range of tools and techniques the choice of tools is based on the requirement. Many parameters contribute success of lean. Organizations which implemented lean manufacturing have higher level of flexibility and competitiveness. However, lean manufacturing provides an environment that is highly conducive to waste minimization. The majority of the study focuses on single aspect of lean element, only very few focuses on more than one aspect of lean elements, but for the successful implementation of lean the organization had to focuses on all the aspects such as Value Stream Mapping VSM , Cellular Manufacturing CM , U line system, Line Balancing, Inventory control, Single Minute Exchange of Dies SMED , Pull System, Kanban, Production Leveling etc., G. K. Kiran Kumar ""Understanding the Need of Implementation of Lean Techniques in Manufacturing Industries: A Review "" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23194.pdf
Paper URL: https://www.ijtsrd.com/engineering/mechanical-engineering/23194/understanding-the-need-of-implementation-of-lean-techniques-in-manufacturing-industries-a-review-/g-k-kiran-kumar
THE EFFECTS OF OVERHEAD COST IN THE SELLING PRICE OF A PRODUCT. Alex Raji
Abstract
www.projectworld.com.ng
This study aims to examine the effects of overhead cost in the selling of a product determination in the Nigeria automobile manufacturing industry. Specifically, the study looks at the treatment of overhead costs apportionment from the perspective of the profit making effort of automobile manufacturing firms. The methodology used is interview with staff of one automobile manufacturing company in Nigeria taken as a case study: that is innoson vehicle manufacturing co. ltd in Nnewi Anambra State. The findings of this study show that overhead costs apportionment has significant effect on the determination of “true and fair” selling price of an automobile manufacturing firm, especially as service centres are considered in primary apportionment before their shares are re-apportioned to production centres, using an appropriate method. This study, therefore, recommends that automobile manufacturing firms in Nigeria should adopt the activity based costing method of overhead costs apportionment as it considers service centres of the company together with production centres in fair apportionment of overhead costs, taking into account the percentage of services enjoyed by the production centres from the service centres. This would allow room for fairly accurate determination of total cost per unit of their products, which would ultimately lead to effective pricing decision.
Keywords: Overhead costs, Cost apportionment, Activity Based Costing, Selling Price, and Automobile Manufacturing Industry.
Assessment of the effect of Cost Leadership Strategy on the performance of L...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Project by Indian Society of Management Accountants with Group of MBA Students www.cmaonline.in
ISMA Project as part of students training program to develop skills
An exemplary approach towards strong Academia Industry Partnership
Keys to Succeed in Implementing Total Preventive Maintenance (TPM) and Lean S...IJMTST Journal
Competition is global and it continues to get more intense, with changes in technology, introduction of new and differentiated products and techniques. These changes are faster than what can be implemented. Profits are no longer driven by prices but with costs.[1] Customers have access to just about anything at their finger tips. The expectation like quick response, lower prices, flexible orders and quality products, is increasing every day from the customers. Our OEM’s (Original Equipment Manufacturers) are searching for new methods of doing business and they expect their suppliers, like us to do the same. The challenge in front of us is how we respond effectively to these changing trends in the industry for our survival & growth. Change is the only certainty and the above is very much applicable to any business to achieve and sustain competitive edge. It is evident that organizations, which are innovative and visionary, have successfully implemented the change, realizing its business strategies would lead to their long term survival
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
‘Six Sigma Technique’ A Journey Through its Implementationijtsrd
The manufacturing industries all over the world are facing tough challenges for growth, development and sustainability in today’s competitive environment. They have to achieve apex position by adapting with the global competitive environment by delivering goods and services at low cost, prime quality and better price to increase wealth and consumer satisfaction. Cost Management ensures profit, growth and sustainability of the business with implementation of Continuous Improvement Technique like Six Sigma. This leads to optimize Business performance. The method drives for customer satisfaction, low variation, reduction in waste and cycle time resulting into a competitive advantage over other industries which did not implement it. The main objective of this paper ‘Six Sigma Technique A Journey Through Its Implementation’ is to conceptualize the effectiveness of Six Sigma Technique through the journey of its implementation. Aditi Sunilkumar Ghosalkar "‘Six Sigma Technique’: A Journey Through its Implementation" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-8 | Issue-1 , February 2024, URL: https://www.ijtsrd.com/papers/ijtsrd64546.pdf Paper Url: https://www.ijtsrd.com/other-scientific-research-area/other/64546/‘six-sigma-technique’-a-journey-through-its-implementation/aditi-sunilkumar-ghosalkar
1
Lean Supply Chain Management
2
Table of contents
1. Introduction ............................................................................................................ 3
1.1 What is lean ……………………………………………………………………… 4
2. Why leans supply chain is needed?........................................................................ 5
3. Benefits of lean supply chain management .......................................................... 6
4. Implementation of Lean SCM: ................................................................................... 6
5. Challenges faced while implementing lean SCM: .................................................... 8
6 .Best practices that support Lean SCM process:.......................................................... 9
7. Concluding remarks................................................................................................ 11
8. References. .................................................................................................... 12
3
Lean supply chain management
1-Introduction
Supply chain is an established network of processes that starts from procurement of raw material;
conversion of raw material into final product and then distribution of that finished product to
customers. Over last two decades, the concept of lean supply chain management has gained great
importance from both academics and practitioners. To gain competitive advantages and to
survive in this dynamic environment firm are in need of delivering quality product with
minimum wastage of resources. Therefore the concept of lean Supply chain management is more
practical now a day’s then before it. Lean production is an integrated activity in SCM that is
aimed at achieving high volume production with minimum wastage of raw materials. It focuses
on improving the efficiency of processes on continuous basis, minimizing wastage and
eliminating almost all activities that does add any value in overall supply chain. Lean production
is considered a innovative way of thinking and thus it includes the integration of firms vision,
culture and strategy in such a way that it can serve the customer by providing high quality
product with in low cost and on short delivery Alabama Technology Network, 1998; Inman,
1999; Davis and Heineke,( 2005) cited by Agus& Hajinoor(2012).
Lean production is such a socio-technical system that is aimed on removing wastage by
minimizing supplier, customers and internal variability among firms operations. Lean production
is not only element that helps in achieving goals of Lean Supply Chain, it also includes product
development phase and aspects of distribution channel. Firms that want to implement LSCM
must also manage variable supply of product, processing time, demand ...
Understanding the Need of Implementation of Lean Techniques in Manufacturing ...ijtsrd
In competitive environment lean manufacturing is necessary in every industry. Lean production is a standard manufacturing mode of the 21st century All the manufacturing industries have put a continuous efforts for its survival in these current world. In order to handle the critical situations manufacturers are trying to implement new and innovative techniques in their manufacturing process. Later on lean was formulated and developed as the solution to the fluctuating and competitive business environment. Due to rapid change in business environment the manufacturing organization are forced to face challenges and complexities in the competition. The concept of lean manufacturing was developed for maximize the resource utilization and minimize the wastes. The main focus of the lean manufacturing is to satisfy customer demands for high quality and low cost. The technique not only identifies the reasons for waste but also helps in its removal through marked principles and guidelines. Lean Manufacturing is an efficient and fast growing approach in the world of competition. Lean manufacturing utilizes a wide range of tools and techniques the choice of tools is based on the requirement. Many parameters contribute success of lean. Organizations which implemented lean manufacturing have higher level of flexibility and competitiveness. However, lean manufacturing provides an environment that is highly conducive to waste minimization. The majority of the study focuses on single aspect of lean element, only very few focuses on more than one aspect of lean elements, but for the successful implementation of lean the organization had to focuses on all the aspects such as Value Stream Mapping VSM , Cellular Manufacturing CM , U line system, Line Balancing, Inventory control, Single Minute Exchange of Dies SMED , Pull System, Kanban, Production Leveling etc., G. K. Kiran Kumar ""Understanding the Need of Implementation of Lean Techniques in Manufacturing Industries: A Review "" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-3 , April 2019, URL: https://www.ijtsrd.com/papers/ijtsrd23194.pdf
Paper URL: https://www.ijtsrd.com/engineering/mechanical-engineering/23194/understanding-the-need-of-implementation-of-lean-techniques-in-manufacturing-industries-a-review-/g-k-kiran-kumar
THE EFFECTS OF OVERHEAD COST IN THE SELLING PRICE OF A PRODUCT. Alex Raji
Abstract
www.projectworld.com.ng
This study aims to examine the effects of overhead cost in the selling of a product determination in the Nigeria automobile manufacturing industry. Specifically, the study looks at the treatment of overhead costs apportionment from the perspective of the profit making effort of automobile manufacturing firms. The methodology used is interview with staff of one automobile manufacturing company in Nigeria taken as a case study: that is innoson vehicle manufacturing co. ltd in Nnewi Anambra State. The findings of this study show that overhead costs apportionment has significant effect on the determination of “true and fair” selling price of an automobile manufacturing firm, especially as service centres are considered in primary apportionment before their shares are re-apportioned to production centres, using an appropriate method. This study, therefore, recommends that automobile manufacturing firms in Nigeria should adopt the activity based costing method of overhead costs apportionment as it considers service centres of the company together with production centres in fair apportionment of overhead costs, taking into account the percentage of services enjoyed by the production centres from the service centres. This would allow room for fairly accurate determination of total cost per unit of their products, which would ultimately lead to effective pricing decision.
Keywords: Overhead costs, Cost apportionment, Activity Based Costing, Selling Price, and Automobile Manufacturing Industry.
Assessment of the effect of Cost Leadership Strategy on the performance of L...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Project by Indian Society of Management Accountants with Group of MBA Students www.cmaonline.in
ISMA Project as part of students training program to develop skills
An exemplary approach towards strong Academia Industry Partnership
Keys to Succeed in Implementing Total Preventive Maintenance (TPM) and Lean S...IJMTST Journal
Competition is global and it continues to get more intense, with changes in technology, introduction of new and differentiated products and techniques. These changes are faster than what can be implemented. Profits are no longer driven by prices but with costs.[1] Customers have access to just about anything at their finger tips. The expectation like quick response, lower prices, flexible orders and quality products, is increasing every day from the customers. Our OEM’s (Original Equipment Manufacturers) are searching for new methods of doing business and they expect their suppliers, like us to do the same. The challenge in front of us is how we respond effectively to these changing trends in the industry for our survival & growth. Change is the only certainty and the above is very much applicable to any business to achieve and sustain competitive edge. It is evident that organizations, which are innovative and visionary, have successfully implemented the change, realizing its business strategies would lead to their long term survival
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Skye Residences | Extended Stay Residences Near Toronto Airportmarketingjdass
Experience unparalleled EXTENDED STAY and comfort at Skye Residences located just minutes from Toronto Airport. Discover sophisticated accommodations tailored for discerning travelers.
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Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
1. See discussions, stats, and author profiles for this publication at: https://www.researchgate.net/publication/272803324
Product Cost Management via the Kaizen Costing System: Perception of
Accountants
Article in Journal of Management and Sustainability · November 2013
DOI: 10.5539/jms.v3n4p114
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2. Journal of Management and Sustainability; Vol. 3, No. 4; 2013
ISSN 1925-4725 E-ISSN 1925-4733
Published by Canadian Center of Science and Education
114
Product Cost Management via the Kaizen Costing System: Perception
of Accountants
Pius Vincent Chukwubuikem Okoye1
, Francis Chinedu Egbunike1
& Olamide Mofolusho Meduoye2
1
Department of Accountancy, Nnamdi Azikiwe University, Awka, Nigeria
2
First Bank of Nigeria (FBN) Ltd., Nigeria
Correspondence: Egbunike Francis Chinedu, Department of Accountancy, Nnamdi Azikiwe University, P.M.B.
5025, Awka, Anambra State, Nigeria. Tel: 234-813-285-0409. E-mail: chineduegbunike@rocketmail.com
Received: May 27, 2013 Accepted: August 5, 2013 Online Published: November 18, 2013
doi:10.5539/jms.v3n4p114 URL: http://dx.doi.org/10.5539/jms.v3n4p114
Abstract
Managing cost of production is at the heart of survival of present day corporations, as increased competition,
uncertainty and risk present in the operating environment pose challenges for 21st
century managers. This
empirical paper examines product cost management strategies by adopting and implementing the Kaizen Costing
System. The sample size of the study was 60 respondents comprising accountants distributed across product and
service sector organisations in Anambra State, south-eastern Nigeria. Three hypotheseswere formulated and
tested in the study. In addition to descriptive statistics, Mann-Whitney U, Kolmogorov-Smirnoff and
Multivariate Analysis of Variance (MANOVA) were used in analyzing the primary data. The results ofthe data
analysis showed that implementing a Kaizen Costing System would provide managers with strategies for
reducing material procurement and usage costs, and also reduce labour utilization cost. Respondents also
perceived a link between cost reduction strategies at the minimal batch production phase and the maximum batch
production phase. Based on this, the study recommends that Nigerian manufacturing firms should adoptand
implementthe Kaizen Costing System, this should however not be done in isolation as such a system would
require corporate strategy overhaul and alignment, a kaizen culture was suggested as counterpart in the system
implementation for incorporation at the strategic level.
Keywords: Kaizen Costing System (KCS), product cost management
1. Introduction
The financial system of various economies has witnessed a down-turn, in the aftermath of the global financial
crisis of 2008 and beyond (Osisioma, 2010). Most economies are still battling with adjustment programs meant
to combat the impact of the crisis. Corporations in these economies are not left out, as access to finance
constantly declines primarily due to volatility of the capital market; corporations are forced to down scale the
size of their operating activities. Osisioma (2010) observed that manufacturing firms, particularly automobile
industries witnessed a drop in sales level, an accumulation of unsold stocks, and a declining demand level
leading to a fall in profit level. Thus, managing cost of production is therefore the focal point of any manager, as
increased competition in the modern business environment among companies; coupled with a turbulent market
system, allowing for free entry and exit of market participants, the choice of a product by a consumer is highly
dependent on the consumers perceived value of the product and the availability of substitutes. Thus, with the
growing presence of ‘vocal customers’ (Sani & Allahverdizadeh, 2012), demanding high quality products at
lower prices (Jayeola, Sokefun, & Oginni, 2012) companies are necessitated to upgrade or modify their
processes ‘constantly’ in order to lower cost of products or services they trade (Budugan & Georgescu, 2009) in
order to, stay ahead of competition and meet the growing customer demands (Sani & Allahverdizadeh, 2012).
This can only be achieved through process redesign measures aimed at cost reduction (Sani & Allahverdizadeh,
2012) with a resulting effect on the market price of the product.
Mishra and Gupta (2010) observed that the change factor rendering uniqueness and competitiveness to any
company is the quality of its final product and/or service rendered to customers. Managers are therefore faced
with a dual objective: achieving improvements in product or service quality and simultaneously managing
production cost. Thus, managing cost of production is at the centre of survival for modern corporations (Jayeola,
Sokefun, & Oginni, 2012), given the advances of the 21st
century causing dramatic changes in the production
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process; the ‘survival triplet’ for modern day corporations is on how ‘to manage product/service cost, quality and
performance’ (Innes & Mitchell, 1991, cited in Jayeola, Sokefun, & Oginni, 2012). Thus, a market driven change
is fundamental which should be implemented through small gradual processes targeted at areas which impact on
‘profitability, competitiveness and growth’ (Mishra & Gupta, 2010).
To calculate and manage product costs, a critical understanding of the tasks or activities that generate such costs
is needed by managers (Budugan & Georgescu, 2009). A cost system for understanding the impact of these
value-added tasks or activities is therefore necessary, as most cost management systems ignore the effect of
non-quantifiable attributes, such as: quality, throughput, flexibility, etc. in the manufacturing process and are in
conflict with strategic management objectives (Berliner et al., 1988, cited in Modarress, Ansari, & Lockwod,
2004). In this vein, the kaizen costing approach was developed and adopted initially by Japanese firms; the
system is based on achieving small incremental adjustments in the product’s manufacturing process, rather than
the design process (target costing approach) so as to retain the product’s functionality in line with customer
requirements being a key to successful demand conditions. This is because managers utilize the approach to
eliminate costs after achieving learning experiences and conducting value-analysis at each stage of the
production process. The continuous cost reduction involves four dimensions which must be integrated in the
management of an organization (Epuran, Băbăită, & Grosu, 1999, cited in Budugan & Georgescu, 2009):
Taking into account the operating environment of the business, such as: markets and the activities of
competitors;
Integrating the skills of the various functions of the enterprise;
Viewing product decisions from a futuristic perspective i.e. effect of current decisions on future outcomes;
and,
Creating a more stringent connection between budgeting and the control of the current activity.
Thus, the entire process is holistic in nature comprising the activities of all departments in the organization,
which can be achieved through effective communication procedures and the institutionalization of a Kaizen
Culture at the corporate strategic level.
1.1 Objectives of the Study
The main objective of this study is to determine whether the implementation of a Kaizen Costing System (KCS)
would provide managers with strategies for reducing costs associated with different stages of the Manufacturing
Life Cycle. Three phases of the manufacturing life cycle were identified, thus: the introductory phase (prototype
creation/development), minimal batch production phase (growth stage) and maximum batch production
(maturity stage).
More specifically, this study shall address the following objectives:
1) To determine whether the implementation of a Kaizen Costing System would provide managers with cost
reduction measures at the product’s introductory phase.
2) To determine whether the implementation of a Kaizen Costing System would provide managers with cost
reduction measures at the minimal batch production phase.
3) To determine whether the implementation of a Kaizen Costing System would provide managers with cost
reduction measures at the maximum batch production phase.
1.2 Research Questions
1) To what extent would the implementation of a Kaizen Costing System provide managers with cost reduction
measures at the product’s introductory phase?
2) To what extent would the implementation of a Kaizen Costing System provide managers with cost reduction
measures at the minimal batch production phase?
3) To what extent would the implementation of a Kaizen Costing System provide managers with cost reduction
measures at the maximum batch production phase?
1.3 Research Hypotheses
H01: The implementation of a Kaizen Costing System would not provide managers with cost reduction measures
at the product’s introductory stage.
H02: The implementation of a Kaizen Costing System would not provide managers with cost reduction measures
at the minimal batch production phase.
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H03: The implementation of a Kaizen Costing System would not provide managers with cost reduction measures
at the maximum batch production phase.
2. Literature Review
2.1 Kaizen Costing System (KCS)
Kaizen a term with Japanese origin (Sani & Allahverdizadeh, 2012), was launched by Masaaki Imai (Rof, 2012),
the concept is a coinage of two Japanese words: KAI (Change) and ZEN (for better) (Rof, 2012). Thereafter,
Yashuhiro Monden from Japan developed Kaizen Costing as the costing counterpart to the Kaizen approach
(Industrial and Financial Systems, 2001). This concept refers to the process of ‘continuous improvement’ (Rof,
2012; Sani & Allahverdizadeh, 2012).The principle behind Kaizen Costing application is on achieving small,
gradual but continuous improvements in the productionprocess at minimal cost (Rof, 2012). Ellram (2000, cited
in Modarress, Ansari, & Lockwod, 2004) observed that Kaizen Costing ensures that products meets or exceeds
customer demands for ‘quality, functionality, and prices’ in order to sustain the product’s competitiveness. This
according to Rof (2012) can be achieved through a sequential elimination of all the processes that would increase
the product’s cost of production without a corresponding increase in value. Rof (2012) identified the following
characteristics as ensuring the successfulness of the Kaizen Costing approach:
• It lays no emphasis on the present existing situation, by disregarding all ideas implemented in the
production process;
• The system does not strive for perfection, rather seeking gradual improvementsinthe existing situation, at
an acceptable cost;
• It allows managers to exercise discretion in the application of their knowledge and personal skills;
• It encourages collective decision—making, i.e. the ideas of many are better than that of one single person;
• There are no limits to the level of improvements that can be implemented.
According to Budugan and Georgescu (2009) Kaizen Costing involves the planning team, after establishing and
implementing the product and process design, to focus on the operational character of the process and on its
development in the most efficient manner.
Figure 1. Kaizen costing implementation stages
Source: Industrial and Financial Systems (2001).
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Target Costing and Kaizen Costing methods are similar costing techniques which follow a target, but the
following differences can be still be noted among the two (Rof, 2012):
1) Focus: In Target Costing customers’ product requirements are the focal point, whereas in Kaizen Costing the
profitability of the objectives set by the managers;
2) Application: Target Costing is applied by the product design team before the product is manufactured,
whereas the Kaizen Costing is applied during the manufacturing process of the product.
The basic principle guiding the implementation of a Kaizen Costing System is on achieving overall cost
reductions during the product’s manufacturing process, through the integrated effort of all departments and
persons directly involved in the production process. When compared with standard costing, the Kaizen cost
analysis ‘examines the difference between the target Kaizen costs and the actual cost reduction achieved’
(Malaysian Export Academy, 2012). The basic idea in doing this is to achieve ‘incremental cost reductions on a
continual basis in a product's life cycle’ (Malaysian Export Academy, 2012).
The application of the Kaizen Costing (KC) method involves the improvement of the production process via
(Budugan & Georgescu, 2009):
Optimization of the launch system in fabrication;
Setting the machines;
Increase of the performances of the machines;
Staff formation and motivation; and,
Encouragement of the staff charged with the identification of the cost reduction possibilities.
In order to achieve the continuous cost reduction objectives, kaizen budgeting must target the entire organization,
and this involves adequate management which must focus on the following aspects:
Control of all the phases of the lifecycle of a product or service;
Making sure, in a progressive manner, that the new products will be profitable throughout the entire
duration of their life cycle (monitoring of the costs during this cycle by comparing the estimates and the obtained
results, with reference to the selling price of the competition)
Establishing all the elements of the supply chain, inclusive for the suppliers of parts and collaborators, the
objective of the continuous search of opportunities for reducing costs.
Mobilization and motivation of all the competencies within an organization via a transversal approach, thus
favouring competitiveness.
In a study of Kaizen Costing practice among SMEs, Jayeola, Sokefun and Oginni (2012) using a sample of 269
respondents purposively drawn from SMEs in agro-allied (72); confectioneries (67); general trading (71) and
transport (59); distributed across the three senatorial districts in Ogun state, Nigeria, empirically tested for
relationship between cost components and profitability. The Chi-square value was given as 13.034 (p < 0.05)
showing that a relationship existed. The test of the relationship between kaizen cost management technique and
survival of the SMEs gave a Chi-square value of 10.445 (p<0.05). The results of the Logistic Regression showed
that only the fixed cost with Beta value of 2.309; was the most significant cost component that affected the
average annual profit.
3. Research Design and Methodology
The research design utilized in this study is the descriptive survey method. The primary data was obtained from
questions structured using the five point likert scale with the following options: Strongly agree (SA); Agree (A);
Indifferent (ID); Disagree (D); Strongly disagree (SD) with associated weights of 5, 4, 3, 2 and 1 respectively.
Respondents comprised 60 accountants, distributed across product and service organizations in Awka, Anambra
state in south-eastern Nigeria. The following statistical methods were employed in the presentation and analysis
of data: Frequency table, Kolmogorov-Smirnoff test and Multivariate Analysis of Variance (MANOVA). The
results are presented below.
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Table 1. Sex of respondents
Frequency Percent Valid Percent Cumulative Percent
Valid Male 44 73.3 73.3 73.3
Female 16 26.7 26.7 100.0
Total 60 100.0 100.0
Source: Field Survey (2013); SPSS ver. 17.0.
From the table above, Table 1, 44 representing 73.3 percent of the respondents are males while 16 representing
26.7 percent of respondents are females.
Table 2. Nature of industry
Frequency Percent Valid Percent Cumulative Percent
Valid Product 30 50.0 50.0 50.0
Service 30 50.0 50.0 100.0
Total 60 100.0 100.0
Source: Field Survey (2013); SPSS ver. 17.0.
From the table above, Table 2, the respondents are uniformly distributed across the two sectors: 30 representing
50 percent are in product sector organizations and 30 representing 50 percent are in service sector organizations.
Table 3. Highest level of educational qualification
Frequency Percent Valid Percent Cumulative Percent
Valid BSc/HND 39 65.0 65.0 65.0
MSc/MBA 15 25.0 25.0 90.0
PHD 6 10.0 10.0 100.0
Total 60 100.0 100.0
Source: Field Survey (2013); SPSS ver. 17.0.
From the table above, Table 3, 39 representing 65 percent of the respondents are BSc/HND holders; 15
representing 25 percent of respondents are MSc/MBA holders, while only 6 representing 10 percent of
respondents have PHD qualifications.
Table 4. Length of service in the organization
Frequency Percent Valid Percent Cumulative Percent
Valid 1-10 years 40 66.7 66.7 66.7
11-20 years 20 33.3 33.3 100.0
Total 60 100.0 100.0
Source: Field Survey (2013); SPSS ver. 17.0.
From the table above, Table 4, 40 representing 66.7 percent of the respondents have worked for a period ranging
from 1–10 years, while 20 representing 33.3 percent of respondents have worked for a period ranging from
11–20 years.
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4. Analysis and Presentation of Date
Consider Analysis Result for H1
H01: The implementation of a Kaizen Costing System would not provide managers with cost reduction measures
at the product’s introductory stage.
Table 5. Between-subjects factors (hypothesis one)
Value Label N
Sex 1.00 Male 44
2.00 Female 16
Nature of Industry 1.00 Product 30
2.00 Service 30
Highest Level of Educational Qualification 1.00 BSc/HND 39
2.00 MSc/MBA 15
3.00 PHD 6
Length of service in the organisation 1.00 1-10 years 40
2.00 11-20 years 20
Source: SPSS ver. 17.0.
Table 6. Multivariate tests for hypothesis one
Effect Value F Hypothesis df Error df Sig.
Intercept Pillai's Trace .982 653.576a
4.000 47.000 .000
Wilks' Lambda .018 653.576a
4.000 47.000 .000
Hotelling's Trace 55.624 653.576a
4.000 47.000 .000
Roy's Largest Root 55.624 653.576a
4.000 47.000 .000
Source: SPSS ver. 17.0.
Consider Analysis Result for H2
H02: The implementation of a Kaizen Costing System would not provide managers with cost reduction measures
at the minimal batch production phase.
Table 7. Between-subjects factors (hypothesis two)
Value Label N
Sex 1.00 Male 44
2.00 Female 16
Nature of Industry 1.00 Product 30
2.00 Service 30
Highest Level of Educational Qualification 1.00 BSc/HND 39
2.00 MSc/MBA 15
3.00 PHD 6
Length of service in the organisation 1.00 1-10 years 40
2.00 11-20 years 20
Source: SPSS ver. 17.0.
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Table 8. Multivariate tests for hypothesis two
Effect Value F Hypothesis df Error df Sig.
Intercept Pillai's Trace .956 349.344a
3.000 48.000 .000
Wilks' Lambda .044 349.344a
3.000 48.000 .000
Hotelling's Trace 21.834 349.344a
3.000 48.000 .000
Roy's Largest Root 21.834 349.344a
3.000 48.000 .000
Source: SPSS ver. 17.0.
Consider Analysis Result for H3
H03: The implementation of a Kaizen Costing System would not provide managers with cost reduction measures
at the maximum batch production phase.
Table 9. Ranks
Nature of
Industry
N Mean Rank Sum of Ranks
Implementation of the Kaizen Costing System
at the maximum batch production phase would
ensure that unit costs from batch production
process are reduced
Product 30 26.60 798.00
Service 30 34.40 1032.00
Total 60
Table 10. Mann-Whitney & Wilcoxon test resulta
Implementation of the Kaizen Costing System at the maximum batch
production phase would ensure that unit costs from batch production
process are reduced
Mann-Whitney U 333.000
Wilcoxon W 798.000
Z -2.280
Asymp. Sig. (2-tailed) .023
a.
Grouping Variable: Nature of Industry.
Table 11. Kolmogorov-Smirnov test resulta
Implementation of the Kaizen Costing System at the
maximum batch production phase would ensure that
unit costs from batch production process are
reduced
Most Extreme Differences Absolute .300
Positive .300
Negative -.100
Kolmogorov-Smirnov Z 1.162
Asymp. Sig. (2-tailed) .134
a.
Grouping Variable: Nature of Industry.
5. Discussion of Findings
The following findings emanated from the literature and empirical data analysis:
1) Respondents perceived that implementing a Kaizen Costing System would provide managers with
techniques for reducing future material procurement costs (see question 2 with mean score of 4.55); they also
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agreed that implementing the KCS at the product’s minimal batch production phase would provide management
with strategies for reducing raw material consumption in the maximum batch production stage (see question 7
with mean score of 4.28).
2) Respondents also agreed that future labour acquisition costs can be targeted for reduction alternatives
during process production (see question 3 with mean score of 4.33); while at the minimal batch production phase,
implementing the KCS would provide management strategies for reducing labour utilization costs in the
maximum batch production stage as a result of the learning curve effect (see question 8 with mean score of 3.5).
3) Respondents perceived that implementing an organizational based Kaizen culture would provide the
production team with strategies for product improvement during design and manufacturing process (see question
5 with mean score of 4.00), by providing the production department with strategies for product development and
enhancement as customer requirements are duly considered for improvements purpose (see question 9 with mean
score of 4.03).
4) Implementing a Kaizen Culture would provide management with strategies to improve the future revenue
profile of the organization as cost of production is constantly reduced (see question 10 with mean score of 4.38).
5) Respondents also agreed that implementing the Kaizen Costing System at the maximum batch production
phase would ensure that unit costs from batch production process are reduced (see question 11 with mean score
of 4.57); while also ensuring that profitability is high as products are adjusted periodically for changes in
material and labour requirements (see question 12 with mean score of 4.32).
6. Conclusion & Recommendations
The current speed of the globalization process facilitated by rapid advances in information technology (ICT) has
posed a serious challenge for 21st century corporations. Thus, corporate survival is a function of the extent to
which organizations react positively to economic and corporate troughs (Ekwueme, Egbunike, & Onyali, 2013).
In this vein, Managing cost of production is at the focal point of present day management, as organizations
compete in a highly turbulent environment managers are constantly seeking for cost reduction systems to
implement.
1) Organizations are encouraged to adopt and implement the Kaizen Costing System to complement existing
techniques in order to strengthen their cost reduction possibilities in present day markets. More especially the
manufacturing sector as Nigeria advances to become one of the top 20 economies in its Vision 2020 agenda.
2) There is a need for organizations to adopt the Kaizen Costing System in addition with an atmosphere of
corporate Kaizen Culture, so as to enable strategy alignment: Since a Kaizen System would entail synergy
between the various departments of the organization. A Kaizen culture would ensure that activities of
departments, especially the production department are complemented by activities of say the marketing
department.
References
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Appendix I
Department of Accountancy
Faculty of Management Sciences,
NnamdiAzikiwe University,
Awka, Anambra State.
1st
January, 2013
The Respondent,
A RESEARCH QUESTIONNAIRE ON PRODUCT COST MANAGEMENT VIA THE KAIZEN
COSTING SYSTEM: PERCEPTION OF ACCOUNTANTS.
This questionnaire is for a study on the above named topic.The questionnaire will enable the researcher gather
the necessary data relating to product cost management via the kaizen costing system. The respondent in
completing this questionnaire is assured that information so contained would be treated with the utmost
confidentiality, bearing in mind that the research is purely an academic exercise which is not intended for any
undue disclosure of personal and/or business information.
Thanks for your anticipated co-operation.
Yours faithfully,
Egbunike, F.C.
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Instruction: Please tick ( ) for the applicable option or provide appropriate answer where necessary.
SECTION A: BACKGROUND INFORMATION
1. Name of Company________________________________
2. Sex: Male Female
3. Nature of Industry:
Product Service
4. Highest Level of Educational Qualification:
BSc/HND MBA/MSc PhD
(Optional) Professional Qualification (Name) ______________________
5. Length of service in the organisation:
1-10 years 11-20 years
21-30 years 31 years and above
SECTION B
S/No Question Description SA A ID D SD
1 Implementing the Kaizen Costing System at the product’sintroductory phase would provide
management with strategies for reducing costs during the actual production process
2 Future material procurement costs can be targeted for cost reduction alternatives during process
production
3 Future labour acquisition costs can be targeted for cost reduction alternatives during process
production
4 The Kaizen Costing system would enable reduction of future selling and distribution costs as
managers compare and select the least cost alternative
5 Implementing an organisational based Kaizen Culture would provide the production team with
strategies for product improvement during design and manufacturing process
6 Implementing the Kaizen Costing System at the product’s minimal batch production phase would
provide management with strategies for reducing costs during the maximum batch production
process
7 Implementing the Kaizen Costing System at the product’s minimal batch production phase would
provide management with strategies for reducing raw material consumption in the maximum
batch production stage
8 Implementing the Kaizen Costing System at the product’s minimal batch production phase would
provide management with strategies for reducing labour utilization costs in the maximum batch
production stage as a result of the learning curve effect
9 The Kaizen Costing System would provide the production department with strategies for product
development and enhancement as customer requirements are duly considered for improvements
purposes
10 Implementing an organisational based Kaizen Culture would provide management with strategies
to improve future revenue profile as cost of production is constantly reduced
11 Implementation of the Kaizen Costing System at the maximum batch production phase would
ensure that unit costs from batch production process are reduced
12 Implementation of the Kaizen Costing System at the maximum batch production phase would
ensure that profitability of products in the maximum batch production phase are high as
products are adjusted periodically for changes in material and labour requirements
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Appendix II
Descriptive Statistics
N Minimum Maximum Mean Std. Deviation
Implementing the Kaizen Costing System at
the product’s introductory phase would
provide management with strategies for
reducing costs during the actual production
process
60 1.00 5.00 4.3667 1.04097
Future material procurement costs can be
targeted for cost reduction alternatives during
process production
60 1.00 5.00 4.5500 .89110
Future labour acquisition costs can be
targeted for cost reduction alternatives during
process production
60 1.00 5.00 4.3333 1.05230
The Kaizen Costing system would enable
reduction of future selling and distribution
costs as managers compare and select the
least cost alternative
60 2.00 5.00 4.3000 1.07829
Implementing an organisational based Kaizen
Culture would provide the production team
with strategies for product improvement
during design and manufacturing process
60 1.00 5.00 4.0000 1.31484
Valid N (listwise) 60
N Minimum Maximum Mean Std. Deviation
Implementing the Kaizen Costing System at
the product’s minimal batch production phase
would provide management with strategies
for reducing costs during the maximum batch
production process
60 1.00 5.00 4.1833 1.34658
Implementing the Kaizen Costing System at
the product’s minimal batch production phase
would provide management with strategies
for reducing raw material consumption in the
maximum batch production stage
60 2.00 5.00 4.2833 1.15115
Implementing the Kaizen Costing System at
the product’s minimal batch production phase
would provide management with strategies
for reducing labour utilization costs in the
maximum batch production stage as a result
of the learning curve effect
60 1.00 5.00 3.5000 1.62084
The Kaizen Costing System would provide
the production department with strategies for
product development and enhancement as
customer requirements are duly considered
for improvements purposes
60 2.00 5.00 4.0333 1.24828
Implementing an organisational based Kaizen
Culture would provide management with
strategies to improve future revenue profile
as cost of production is constantly reduced
60 1.00 5.00 4.3833 1.02662
Valid N (listwise) 60
13. www.ccsenet.org/jms Journal of Management and Sustainability Vol. 3, No. 4; 2013
125
N Minimum Maximum Mean Std. Deviation
Implementation of the Kaizen Costing
System at the maximum batch production
phase would ensure that unit costs from batch
production process are reduced
60 1.00 5.00 4.5667 .88999
Implementation of the Kaizen Costing
System at the maximum batch production
phase would ensure that profitability of
products in the maximum batch production
phase are high as products are adjusted
periodically for changes in material and
labourrequirem
60 1.00 5.00 4.3167 1.04948
Valid N (listwise) 60
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