Kaizen Costing: Overview and Strategic Approaches PPT

This PPT slide, part of the 24-slide 5 Cost Management Strategies PowerPoint presentation, presents an overview of Kaizen Costing, also referred to as continuous improvement costing. It outlines the purpose and methodology of this cost management strategy, emphasizing its role in reducing costs without compromising quality or safety. The description highlights that Kaizen Costing is fundamentally about achieving cost reductions while utilizing fewer resources.

A key section compares Kaizen Costing with Target Costing, detailing both similarities and differences. The similarities indicate that both approaches aim for efficiency in resource utilization. However, the differences are more pronounced. Target Costing is primarily employed during the design phase and involves only designers, while Kaizen Costing is applied during the manufacturing stage and necessitates significant employee involvement. This distinction underscores the collaborative nature of Kaizen Costing, which relies on contributions from various levels of the organization.

The slide also introduces 2 approaches under Kaizen Costing: Asset Specific and Product Specific. The Asset Specific approach focuses on improving activities related to specific assets or resources, while the Product Specific approach targets improvements associated with particular products. This dual approach allows organizations to tailor their cost management strategies to their unique operational contexts.

The concluding statement reinforces the core idea of Kaizen Costing, which is to establish target costs and ensure that the design and manufacturing processes do not exceed these costs. This focus on continuous improvement and employee engagement positions Kaizen Costing as a proactive strategy for organizations seeking to enhance efficiency and reduce costs effectively.

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Cost Reduction Assessment Continuous Improvement Employee Engagement Cost Management Cost Reduction Kaizen Manufacturing Purpose