Professional Documents
Culture Documents
Kizen Costing
Kizen Costing
Indian Connection
List your own Problems Grade problems as to minor, difficult and major Start with the smallest minor problem Move on to next graded problem and so on Remember improvement is part of daily routine Never accept status quo Never reject any idea before trying Eliminate tried but failed experiments Highlight problems rather than hiding
Kaizen Philosophy
Approach to 1 Attitude
2 Employees 3 Information 4 Interpersonal Relationship 5 Managerial Belief 6 Management Culture 7 Management Function 8 Management Stress
Traditional Organisation
Kaizen Environment
Let it go
Cost Restricted Commercial Routine Bureacratic Control Functional
Continuous Improvement
Form small groups from 6-10 persons Give them numbers-Kaizen 1,Kaizen-2 Appoint an evaluator of the group Arrange weekly meetings of group (6-12 months) Submit progress of improvement in writing Allow each member to express No disturbance when others are speaking However Clarifications can be sought instantantly
Evaluation
A S T E M
Evaluation
Other factors
Change in Attitude
Tangible Benefits
Reduction in Production Time Reduction in Rejection Energy Saving Improved Quality
Intangible Benefits
Benefits of Kaizen
Kaizen Costing
Kaizen Costing-definition
Kaizen costing is the maintenance of present levels for products Currently being manufactured via systematic efforts to achieve the desired cost level
Product Specification Product Planning Phase Price Targets Profit Targets Cost Targets Life Cycle Costing Major Product/Process Changes
Does Design Meet Target Costs?
Cost Reduction by 5%
Establishment of cost reduction target amount and its accomplishment through Kaizen activities---continuous improvement
Kaizen Costing
Product Development, Design & Manufacturing
Target Costing
Kaizen Costing
Training, Learning Before goal of Target Costing or Kaizen Costing is imposed on the Organisation