Abstract
Businesses that plan to protect and maintain their assets in increasingly competitive global environment focus on activities that do not create value and reduce the cost of these activities to produce high quality at low cost. Kaizen costing method plays an important role in reducing and eliminating these activities. The main purpose of application in this context is to determine whether the Kaizen costing method has an effect on reducing or eliminating production losses as an activity that does not create value in a transformer producing enterprise. In addition, the effect of Kaizen costing method on production costs was researched in the study, thus saving costs. The effect of Kaizen costing method has been applicated in Kentav Transformer Plant with a semi-structured interview method in order to achieve these goals and objectives, that is, in reducing the activities that do not create value in the production process and saving in production costs. In the research, only the losses in the production process are focused, and activities that do not create value other than production losses are excluded. As a result of the research, it can be said that Kaizen costing method has a positive effect in reducing production losses (defective products, faulty products, wastage and residuum) and saving in production costs.
Highlights
Today, the changes and developments that occurred both economically and technologically increased the competition even more
It is understood that all of the managers related to Kaizen costing have detailed information, while 67% of the employees in the production process have sufficient information and 33% have general knowledge
It is seen that the effect of Kaizen costing on reducing production losses from activities that do not create value has been adopted by the continuous improvement approach in the enterprise
Summary
The changes and developments that occurred both economically and technologically increased the competition even more. In an increasingly competitive environment, the attention of businesses is focused on activities that do not create value and the costs of these activities. Activities that do not create value can move businesses away from cost leadership by increasing costs in a global competitive environment. Activities that do not create value in businesses cause cost increase and profit losses. These activities that cause an increase in costs should be reduced or eliminated without affecting the product quality and market value. Reducing losses in resource use and increasing their effectiveness, making product costs easier to calculate and making healthier decisions in a global competitive environment facilitates cost management (Sowmya et al, 2020: 8284). In order to achieve success in cost management, activities that do not create value should have been focused
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