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Kaizen Costing Case Study

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Kaizen costing is a process of continual cost reduction that occur after the product create or design has been completed and in the production now. Cost reduction techniques can include working with the suppliers to reduce the costs in the processes or reduce waste costs. Kaizen costing is a cost-reduction system that is applied to a product in the production. Japanese word in kaizen costing translated to “kai” which means change and “zen” which means good. The character of “Kaizen” can be translated to “continuous improvement” and its aims to improve the productivity by making gradual changes to the entire manufacturing process.
According to Yashihuro Moden defined kaizen costing as “the maintenance of present cost levels of the product currently being created or designed via systematic efforts to achieve the desired level of cost”. Kaizen costing aims to reduce the actual costs of processes by a pre-specified amount …show more content…

For example, there are many goods that made in China which the quality of good is inferior when Toyota starts to produce their car. Nowadays, Toyota is regarded as the top manufacturers of the quality cars. Toyota should be link to the Kaizen costing in order to continuously improve their car features, so that the firms can operate more efficiently.
Excessive emphasis on tying to improved KPIs
The successful of Kaizen Costing would be only achieved through the true desire for improvement. Although it is very important on tying to improved Key Performance Indicators (KPIs), however the effect will arise due to the excessive emphasis. In fact, Kaizen Costing need to takes time to improve slowly, it is not a magic, and it is not revolutionary character. In many circumstances, when the management does not see any immediate result, they will treat it as a failure. They doesn’t truly desire to continuous for improvement.
A heavily bureaucratic

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