Kaizen Costing Research Articles

Application of Kaizen and Kaizen Costing in SMEs

Abstract The research problem revolves around an attempt to answer the questions: “Are enterprises from the SME sector interested in implementing strategic management accounting instruments, including Kaizen Costing? Is Kaizen Costing more widely used in SMEs operating in Poland?" The aim of the article is therefore to highlight the importance of Kaizen and Kaizen Costing and to draw attention to how much support these solutions can be for SMEs in the current social, economic, and environmental conditions. The article presents the results of surveys conducted in this regard. The accomplishment of the established objective of the work required conducting a review of the literature on the subject and presenting conclusions from previous own research in the above respect. The method of participant observation, critical analysis and synthesis was used in the study. According to the research results, there is little interest in these instruments in large enterprises, however, in medium-sized enterprises, the interest and degree of application of Kaizen and Kaizen Costing is negligible. The research results indicate the need for further development and broadening the dialogue on the usability and benefits which enterprises, in particular SMEs, may derive from the introduction of such innovative solutions.

PENERAPAN KAIZEN COSTING MENGGUNAKAN METODE PDCA UNTUK MEMAKSIMALKAN COST REDUCTION DI PT IBARA LIOHO INDONESIA

PT Ibara Lioho Indonesia is an automotive manufacturing company, specifically specializing in producing car power steering parts. Located in the Dwipapuri Industrial Area, Sumedang Regency. Improvement for competitiveness does not always have to focus on quality, functionality, design, and utility, but can also be in terms of cost (kaizen costing). Therefore, it requires careful management in analyzing production and re-calculating the costs that need to be incurred to produce a product. The research objective is to understand how to perform cost reduction in order to determine the total cost of kaizen costing for the existing problem. The research methodology used in this writing is a qualitative descriptive approach with the assistance of the PDCA method. The data used for problem-solving is obtained from literature studies and field studies. From the results of this research, it can be concluded that the implementation of kaizen costing can reduce manufacturing costs and process label writing at PT Ibara Lioho Indonesia. Thus, kaizen costing can be considered as an alternative for management to achieve cost reduction.

Peran Kaizen Costing Sebagai Metode Untuk Mengurangi Biaya Produksi Guna Meningkatkan Laba Pada Usaha Tempe Pak Andik Nganjuk

This study aims to determine the role of kaizen costing as a method for reducing production costs in order to increase profits in Pak Andik Nganjuk's tempeh business. This type of research uses quantitative methods. Source of data used is primary data. The data is in the form of reports on production costs, number of employees, company profit and loss statements, production plans and their realization for 2022. Data collection was carried out using interviews and documentation methods.From the results of research that has been done that the application of the Kaizen Costing method and activity analysis by reducing the costs of inefficient activities such as depreciation of production sites but not reducing the number of existing units can optimize the profit percentage of the company by 11 percent. Using the Kaizen Costing method can increase a company's profit, this is evidenced by the gross profit before Kaizen Costing of Rp. 36,000,000 and gross profit after using the Kaizen Costing method of Rp. 40,620,000.

Effect of Cost Control on Corporate Performance: Evidence from Selected Listed Brewery Firms in Nigeria

The main objective of this study is to determine the effect of cost control on corporate performance of listed brewery firms in Nigeria for the period of 2011 to 2021. To achieve this objective, material cost (MATC), labour cost (LABC) and overhead cost (OHDC) were used as proxy for cost control while the return on assets (ROA) was used as the proxy for the dependent variable, corporate performance. The study adopted ex post facto design and the data was obtained from the sampled firms’ annual reports and World Bank annual data official publications. The study was anchored on the Kaizen Costing Theory. The ordinary least square (OLS) regression technique was employed to analyze the data and test the hypotheses formulated at 5% level of significance. The findings revealed that cost control proxies such as material cost and overheads have positive and significant impact on corporate performance of brewery firms in Nigeria while labour cost has positive and insignificant impact on corporate performance of brewery firms in Nigeria. The study concluded that the elements of cost control used in the study such as material cost and overheads have positive and significant impact on corporate performance while labour cost has positive and insignificant impact on corporate performance of brewery firms in Nigeria. The study therefore recommends among other things that the management of brewery firms in Nigeria should embark on cost control strategies that emphasized on material cost, labour cost and overheads reduction in order to improve on their corporate performance indices.

Unlocking the Green Treasure Trove: Improving Resource Efficiency through Circular Economy Cost Management

The aim of the article is to show the usefulness of modern cost management tools in improving the efficiency of the use of company resources. Particular attention was paid to activity-based costing (ABC), including its latest concept of time-driven activity-based costing (TD ABC), target costing and kaizen costing.

COST MANAGEMENT OF THE LIFE CYCLE OF REAL ESTATE OBJECTS: EXPERIENCE, PROBLEMS AND SOLUTIONS

The authors of the article address the international experience of implementation and use of the concept of evaluation and cost management of Life Cycle Costing (LCC) and Whole Life Appraisal (WLA) of real estate objects. The author’s interpretation of the issues and ways of introduction of this concept in developing countries, in particular in Ukraine, is presented. The article describes the tools and forms of public-private partnership for implementing this concept in the practice of effective functioning of socio-economic systems. Specifics of the managing life cycle costing of real estate objects basing on such approaches/ methods as development, maintenance, surveying, and concession are determined. The paper emphasizes the practical significance for all interested parties in the real estate development market of using methods of a comprehensive and systematic approach to the integrated evaluation of assets in the process of their design, construction, operation, and maintenance. The authors focus on the need for comprehensive accounting of the costs of the whole life cycle of a product (both construction products in the form of buildings and structures, and any high-tech products with a long life cycle from its design to disposal). Notable cost management methods (Kaizen Costing, Standard Costing, and Target costing) are considered, as a significant component of the LCC/WLA concept the development. The authors analyse the role of corporate investment funds, joint investment institutions, professional associations, and asset management companies in the implementation of the LCC/WLA concept in the field of real estate development. The respective statistical data (from Ukrainian practical experience) that can be used to prognosticate the impact of inflation in the construction industry are cited. The significance of database digitalization and BIM technologies in the introduction of the regarded concepts in the practice of construction and development activities is stressed.

Analisis Penerapan Target Costing sebagai Sistem Pengendalian Biaya Produksi pada UD. Era Jaya Kota Sibolga

This study aims to implement Target Costing as a production cost control system at UD. Era Jaya City of Sibolga, using a quantitative descriptive approach. Descriptive analysis is used to provide an overview and detailed explanation of the problems studied. The results of this study are 1). The application of target costing to the Era Jaya Trading Business in Sibolga City can reduce production costs by up to 9% to 13% 2). Able to save production costs for making 2-door and 3-door cabinets of Rp. 96,620 and Rp. 159,119. 3). Successfully reduced production costs for 2 and 3 door cabinets, with a reduction in production cost of Rp. 92,620 and Rp. 159,119. The conclusion is that by applying target costing, Era Jaya Trading Enterprises, Sibolga City can save production costs by up to 9% to 13%, which acts as a means of controlling production costs in the manufacture of 2-door and 3-door cabinets without reducing the quality of production results, thus enabling increased profits. optimally by maintaining a competitive selling price in the market. The next researcher suggests considering the variation of variables associated with the implementation of target costing, and considering the use of kaizen costing and value engineering as additional cost control methods, to avoid repetition of previous studies. thereby enabling an optimal increase in profit by maintaining a competitive selling price in the market. The next researcher suggests considering the variation of variables associated with the implementation of target costing, and considering the use of kaizen costing and value engineering as additional cost control methods, to avoid repetition of previous studies. thereby enabling an optimal increase in profit by maintaining a competitive selling price in the market. The next researcher suggests considering the variation of variables associated with the implementation of target costing, and considering the use of kaizen costing and value engineering as additional cost control methods, to avoid repetition of previous studies.

Developing a Strategic Cost Management Model for a Potato Packing Facility

Purpose: The purpose of the study was to solve a real-life business problem by developing a new customised strategic cost management (SCM) model for the case study entity － a South African potato packing facility. Design/method/approach: The study followed a pragmatic philosophy where data were collected by observation and semi-structured interviews. The data focused on the following SCM techniques: Business process re-engineering, activity-based management, Kaizen costing, total quality management, and target costing. Findings: The investigation found that, except for target costing, all the SCM techniques belong in a SCM model. The investigation also revealed specific practical operational examples which were firstly analysed according to codes, and secondly aggregated, rewritten, and inductively reasoned in order to illustrate these processes in a new customised SCM model. Practical implications: After the operational processes were documented, a new customised SCM model was developed for the case study entity. The findings of the study could be helpful when other organisations manufacture, process, or pack various products to make informed management decisions. Originality/value: The value of the study lies in the likelihood to establish transferability － the process that was followed to develop a new customised SCM model could be replicated.

Students’ Perceptions of Management Accounting and the Accounting Profession

Purpose: Strategic Management accounting includes activity-based costing, target costing, the balanced scorecard, Kaizen costing, throughput costing, and other new management accounting approaches. Management accounting reviews changes in performance measurement of information requirements and the use of novel communication, including management information system reports, forms, channels, and the implications of varying organizational structures to aid the management accounting professionals in a new environment. Hence this paper aims to know Students’ perceptions of management accounting (course and field) and the accounting profession. Design/Methodology/Approach: The data for this study were collected using a quantitative approach. The researchers created a questionnaire with questions delivered over Google form to the students who study management accounting from various universities in Oman. Then the researchers analyzed the data using Partial least squares structural equation modeling (PLS-SEM) software. Findings: The result revealed that students’ perceptions of management accounting courses have a significant influence on the accounting profession where it was p<0.001, t=12.758, and student’s perception of the management accounting field also has a significant impact on the accounting profession where it was p<0.05, t=2.126. This result indicates that the Students' Perception of management accounting courses and students' perception of the management accounting field significantly impact the accounting profession. Recommendations: Improving management accounting curricula, providing faculty development programs, promoting industry collaboration and internships, providing career counselling, encouraging industry-relevant research, and cooperating with professional accounting bodies are especially important in higher education institutions' activities. With these methods, higher education institutions may guarantee that their students are given practical training, match their academic programs to market demands, and increase their employability in accounting.

Introduction of Strategic Cost Management for Instrumentation Industry

In this paper Researchers discuss about the Strategic cost management and its various techniques of it. The basic aim of Strategic Cost Management (SCM) is to help the organisation to achieve the continuous advantages with the respect to cost reduction. Strategic Cost Management lays a greater focus on continuous improvement to deliver superior quality product to the customer’s and stake-holders over the long period of the time. In this paper Researchers discuss about the just-In-Time (JIT), Kaizen costing and Quality Costing of Strategic cost management. Nature of JIT, JIT Production, JIT Purchasing, Principles of Kaizen Costing, and Barriers of Quality costing are described in this paper. SCM is a modern cost management approach consisting of changing cost and management accounting system, depending on the change of production system in highly competitive environment.

Kaizen Approach to Reducing Production Costs and a Case Study

Purpose –The purpose of this study is to reduce the costs of a plywood manufacturing enterprise in Orduprovince with the kaizen costing method and achieve the targeted profit.Design/methodology/approach –Kaizen costing method is an approach that aims to reduce the costs of the enterprise through continuous improvement activities.As a result of the interviews with the business managers and the studies carried out in the manufacturing field, it was determined how much cost reduction the business should reduce to reach the targeted profit. Then, the units and amount of this reduction were calculated. Thesecalculations were made using the kaizen costing method, which was developed based on the kaizen philosophy aimed at continuous improvement.Findings–As a result of the calculations, it has been revealed that a cost reduction of 2.1 million TL in production is required for the enterprise to reach the targeted profit. 1.05 million TL, which is half of this cost reduction, should be in the peeling unit, 630.000 TL in the drying unit, 315.000 TL in the pressing unit and 105.000 TL in the storage unit.Discussion –Today, businesses are constantly implementing new methods to cope with the increasing competition all over the world. One of them is the kaizen costing method. This method, which first appeared in Japan, aims to control costs, and reduce these costs to reach the targeted profit. With kaizen costing, continuous improvements are realized by focusing mainly on critical processes. Unlike traditional costing methods, it is a superior method in assigning duties and responsibilities for improvements to theemployees who do the work directly in the production.

Kaizen Costing – A Continuous Improvement Strategy of the Organisations

Nowadays, in the business field, a perpetual tendency of cost reduction, labor optimization, waste elimination and continuous improvement is perceived. It is self-evident that achieving these objectives requires a strategy, so that Kaizen costing is helpful in this respect. The approach aims at fulfilling these purposes and, at the same time, creates a pleasant environment, in a permanent organic growth, both for the employees and the management and the entire community. The object of the research hereby is presenting the Kaizen costing strategy, its principles and rules, but at the same time it focuses on highlighting the implementation of this approach at the level of industries with very different fields of activity. Is the Kaizen strategy really efficient for achieving the mentioned objectives? Can it be successfully implemented within organizations from different industries? Does Kaizen costing have benefits and limitations? Does it contribute to increasing the efficiency of the manufacturing process? These are just a few of the questions to which the study hereby is trying to answer, being intended for those who strongly believe that there is always room for improvement.

KAIZEN COSTING UNTUK MENINGKATKAN KEPUASAN PELANGGAN PADA UMKM (STUDI KASUS: KEDAI KOPI UNCLEBREW JAKARTA)

The purpose of this study was to analyze the application of kaizen costing at Unclebrew Coffee Shops to customer satisfaction. The population of this research is the buyers of Unclebrew Coffee Shop Jakarta. The sampling technique used convenience sampling. The result of this study prove that partially the variables Seiri, Seiton, Seiketsu and Shitshuke influence in customer satisfaction, while Seiso no effect on influence customer satisfaction, but simultaneously all the variables Seiri, Seiton, Seiso, Seiketsu and Shitshuke have an effect on customer satisfaction. Keywords: Customer Satisfaction, Kaizen Costing, UMKM

Competitive Advantage in Co-operation of Enterprises Using Kaizen Costing Concept in Times of Extraordinary Dangers

Competitive Advantage in Co-operation of Enterprises Using Kaizen Costing Concept in Times of Extraordinary Dangers

Kaizen Costing and Quality Academic Administration Services Case Study: Bureau of Academic Administration in Trilogy University 2019

The purpose of this study is to explain the application of kaizen costing to the Academic Administration Bureau of the University of Trilogy. Kaizen costing is a concept that aims to reduce costs, strengthen brands, increase market share, increase information exchange within the company, increase profits, reduce capacity utilization, improve employee quality and productivity, and make gradual and continuous improvements to operational activities. Trilogy University Academic Administration Bureau was the object of research and involved employees of the Academic Administration Bureau and Trilogy University students from 2014 - 2019. This study used primary and secondary data. Primary data obtained through questionnaires and interviews, the preparation of the questionnaire considering the concept of 5S in kaizen costing namely Seiri, Seiton, Seiso, Seiketsu, Shitsuke. The results of this study indicate that based on respondents of the Trilogi University Academic Administration employee respondents suggest that only Seiketsu and Shitsuke affect quality of service of the Trilogy University Academic Administration Service. While the results based on student respondents indicate that Seiri, Seiton, Seiketsu, and Shitsuke affect the effectiveness and efficiency of the service of the Academic Administration Bureau of the University of Trilogy.

Innovative management accounting practices for sustainability of manufacturing small and medium enterprises

The environment in which manufacturing small and medium enterprises operate has become very complex, and therefore manufacturing SME’s owners need to be aware of the impact their decisions have on the environment and society. The aim of the research was to identify which innovative management accounting practices can be integrated into manufacturing SMEs’ strategies to overcome the challenge of being blamed by stakeholders as contributors to social and environmental problems. Published articles were sourced from the University of South Africa’s online library using keywords. A systematic literature review was employed to discover themes and concepts during secondary data gathering to detect traditional and innovative MAPs in management accounting literature all over the globe. The qualitative data analysis and research software, Atlas.ti was used to synthesise the data. Thematic analysis was used to evaluate the occurrence of words, phrases, themes, metaphors, and the construction of concepts in MAPs literature. During the analysis, seven innovative MAPs (activity base costing/budgeting; product life cycle costing; total quality management; environmental costing; target costing; kaizen costing and value analysis) were identified. It is recommended that manufacturing SMEs integrate these innovative MAPs into their strategies to impact their environmental, social, supply chain management and recycling policies to promote operational efficiency to achieve sustainability. Further research to identify influencing factors; strategic procedures; and the environmental and social benefits of integrating these identified innovative MAPs into manufacturing SMEs to achieve sustainability, should be undertaken.

Improving of theoretical and methodological basics of managerial accounting at telecommunications service enterprises in the republic of Uzbekistan

This article examines the current development of the theoretical and methodological foundations of management accounting at enterprises in the service sector in the field of telecommunications in the Republic of Uzbekistan. In particular, we study theoretical and organizational and methodological provisions for adapting cost accounting tools and calculating the cost of products and services to the organizational and technological features of organizations in the field of Internet technologies, as well as developing a methodology for calculating the cost of products and services goal-costing, target-costing, kaizen costing, ABC (Activity-Based Costing).

Competences of management accounting systems in managing environmental costs of listed companies in Sri Lanka

This study explores the way and the extent to which listed companies in Sri Lanka manage environmental costs through their management accounting (MA) systems. Applying Mixed Method Research approach; data were collected from 42 listed companies representing five industry sectors in Sri Lanka, through a survey followed by discussions with financial executives and environmental officers of companies. Further, it reviewed National Environmental Act of Sri Lanka for legislation enacted for sampled companies. The main tools of analysis were frequency tables for quantitative data, and qualitative data were analyzed linking them with quantitative analysis and, thus providing expressive detailed interpretations for the phenomena under investigations. Findings indicate that even though all companies are bounded by legislation to take environmental management (EM) initiatives to prevent and control pollution, the MA systems of most companies have not been improved accordingly to incorporate environmental costs and related performance measures. All companies used to take EM measures by making adjustments to existing financial accounting/MA systems which were initiated mainly to facilitate regular business activities. These practices thus, demonstrate lower potential for companies in managing EM costs. Competencies of MA techniques considered differ one to another in managing EM costs, showing greater importance for traditional MA techniques like budgeting, products costing than modern MA techniques like kaizen costing, balanced scorecards. Conversely, the Plantation sector shows greater ability in managing environmental costs through their activity based costing systems implemented by all in the sector. It suggests companies to establish appropriate accounting systems and performance measures which are capable of identifying and managing environmental costs precisely. It also suggests improving awareness among all personnel including accounting staff on how to manage environmental costs through such systems ensuring legal compliances, profitability and survival of the business.

AHP-Systems Thinking Analyses for Kaizen Costing Implementation in the Construction Industry

The incessant reportage of cost overruns and abandoned projects in contemporary literature have accentuated the need for a re-examination of the nature of the cost management strategies deployed to these projects. This study explores the potential of kaizen costing strategy to engender effective cost management within construction project delivery systems in developing countries. Data collected during this study were analysed using the analytic hierarchy process (AHP) and systems thinking approaches to determine the criticality of the factors influencing the effective implementation of kaizen costing. Seven (7) archetypes leading to final causal loop diagram identified the incorporation of the plan–do–check–act approach to project and cost planning, the budgeting system of the construction companies, overhead cost reduction during construction and the overall procurement process. Executing these archetypes will potentially reduce high overhead costs, project cost and time overruns, as well as enhance construction industry sector growth policies and construction organisation corporate governance.

Развитие теоретико-методических основ управленческого учета на предприятиях сферы услуг в области телекоммуникаций в Республике Узбекистан

The article examines the current development of the theoretical and methodological foundations of management accounting at enterprises in the service sector in the field of telecommunications in the Republic of Uzbekistan. In particular, we study theoretical and organizational and methodological provisions for adapting cost accounting tools and calculating the cost of products and services to the organizational and technological features of organizations in the sphere of Internet technologies, as well as in developing a methodology for calculating the cost of products and services goal-costing, target-costing, Kaizen Costing, Activity-Based Costing.