Kaizen
This query is : Resolved
02 August 2010
Hello friends, i was asked to tell something about "Kaizen". can anybody simplify 4-5 points about this word. please
02 August 2010
Kaizen Costing
Kaizen Costing is widely used by Japanese organisation as a mechanism for reducing and managing costs.
Kaizen is the Japanese terms for making improvements to a process through small incremental amounts, rather than through large investments.
The major difference between target and Kaizen costing is that target costing is applied during the design stage whereas Kaizen costing is applied during the manufacturing stage of the product life cycle. With target costing the focus is one the product, and cost reductions are achieved primarily through product design. In contrast, Kaizen costing focuses on the production process and cost reduction are derived primarily through the increased efficiency of the production process. Therefore the potential cost reductions are smaller with Kaizen costing because the products are already in the manufacturing stage of their life cycles and a significant proportion of the costs will have become locked-in.
Kaizen Costing is widely used by Japanese organisation as a mechanism for reducing and managing costs.
Kaizen is the Japanese terms for making improvements to a process through small incremental amounts, rather than through large investments.
The major difference between target and Kaizen costing is that target costing is applied during the design stage whereas Kaizen costing is applied during the manufacturing stage of the product life cycle. With target costing the focus is one the product, and cost reductions are achieved primarily through product design. In contrast, Kaizen costing focuses on the production process and cost reduction are derived primarily through the increased efficiency of the production process. Therefore the potential cost reductions are smaller with Kaizen costing because the products are already in the manufacturing stage of their life cycles and a significant proportion of the costs will have become locked-in.
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