Kaizen Costing Research Articles

The efficiency of kaizen costing system in reducing non-value activities

Modern trends, economic development and technological progress further intensify competition. Thus, in the context of growing competition, the attention of enterprises is focused on non-value activities, i.e. on activities that have no value and associated costs. This is due to the fact that activities of no value in enterprises lead to increased costs and reduced profits. Non-value actions can be observed during the entire course of the company activities. To do this, it is necessary to pay special attention to the fact that values are not formed as a result of actions of the enterprise. Non-value actions in the enterprise include unnecessary materials, packaging, poor quality, production losses, excess inventory, unnecessary transportation, additional control, unproductive working hours, etc. Thus, in this study, the impact of the Kaizen cost calculation system on eliminating or reducing useless activities in the production process was studied using a semi-structured interview at a dry tea factory. The study focuses only on losses in the production process and does not take into account actions that do not create value other than production losses, i.e. are useless. Based on the results of the study, we can say that the Kaizen cost calculation system has a positive effect on reducing production losses (defective production, idle production, excess and waste), which are one of the actions that have no value.

Exploring adoption and implementation of strategic management tools and techniques by listed companies in the Sri Lankan context

The strategic management tools and techniques, also known as modern management accounting (MA) techniques, support managers in all stages of the strategic management process of businesses to achieve better performance. However, literature review evidenced that compared to traditional MA techniques the use of modern MA techniques is low particularly in developing countries. This study thus, explores the extent to which listed companies in Sri Lanka apply selected strategic management tools and techniques: target costing, kaizen costing, balanced scorecard and benchmarking stressing influences and variations among industry sectors with these practices. This study applies the Mixed Method Research approach with its QUAN + qual paradigm. Using a multi-stage purposeful random sampling technique, 42 listed companies were selected demonstrating five industry sectors. Interviews and discussions were conducted preferably with Finance executives of companies to verify the responses to the survey which is the main source of data. Findings advocate that contrary to the low application of modern MA techniques shown in the literature, Sri Lankan companies demonstrate a high level of application of four techniques observed. Even if target costing is not applicable for the whole plantation sector, they demonstrate rather high application of other techniques observed as they often deal with international markets where excellent quality is very important. Findings ratify that extent of application of techniques varies among sectors, mostly induced by factors such as: the nature of products, processes, and markets; stage of the business; size of companies; and the impact of environmental changes on businesses. It concludes that overall Sri Lankan companies are in a view that these practices certainly facilitate them, in keeping aligned product prices with market prices and accompanying quality of products that are essential in surviving in such highly competitive markets while retaining a satisfactory margin securing brand reputation.

Kaizen costing as a culturally-based tool: a Portuguese case-study.

In the 1970s and 1980s, Japanese success was explained by its culture, and entrepreneurs from the West realised that productivity is not reducible to rationalism and technology. Indeed, nowadays it is well recognised that what best distinguishes an organisation from its competitors are not physical and tangible characteristics. Intangible dimensions, like organisational culture, play an important role in organisational success or failure. This research argues that organisational culture interacts with kaizen costing so that effective implementation of kaizen requires a special organisational cultural puzzle. A qualitative approach was adopted. The case study method was used to understand how kaizen costing interacts with organisational culture. The findings suggest that effective implementation of kaizen costing requires a high level of culture coherence. Further research is necessary before we can consistently generalise our conclusion. However, our findings bring new insights to the role of low-level workers in effective implementation of strategic options like kaizen and highlight the importance of intangible assets like organisational culture. This article draws attention to the tenuous frontier between kaizen costing and lean production, and it puts organisational culture on the centre.

Kaizen Costing sebagai Perbaikan Berkelanjutan untuk Meningkatkan Keunggulan Bersaing pada E-Commerce

This study aims to analyze the application of kaizen costing as a continuous improvement to improve the competitive advantage of e-commerce. Kaizen is widely applied to Japanese companies with the concepts of 3M (Muda, Mura, Muri) and 5S (Seiri, Seiton, Seiso, Seiketsu, Shitsuke) that can help management in managing workplaces, improve employee discipline, reduce waste, improve company quality and efficiency . E-commerce as the object of research is PT Aplikasi Karya Anak Bangsa (Go-Jek Indonesia) which involves employees, drivers, and customers as research samples. The method of data collection is done through observation, documentation, interviews and questionnaires. Methods of data analysis through descriptive analysis and verification using the Partial Least Square (PLS) program. Based on the survey results, respondents' responses and company conditions concluded that Go-Jek had implemented the kaizen costing concept in the face of e-commerce competition. However, only the variables Muri, Seiso, Seiketsu, Shitsuke which only have a significant effect on the variable of competitive advantage. This is because the number of respondents who have not felt the effectiveness of the company in implementing kaizen costing. Keywords: Kaizen costing; Continuous improvement; 3M; 5S; Competitive advantage

Logistics costs accounting: challenges for identification in Ukrainian accounting practice

Development of an effective logistics infrastructure for companies contributes to ensuring their effective work, directly affects financial performance and requires the establishment of a management and accounting system for logistics costs. Classifying and registering logistics costs becomes more important in this regard. At this stage of Ukrainian accounting practice, there are challenges for logistics costs accounting such as their identification and registration. Methodological basis of study among different logistics concepts (concept of general logistics costs, concept of reengineering business processes in logistics, concept of an integrated logistics strategy, concept of supply chain management) was total logistics costs concept or the concept of full value as well as process-oriented approach. In the work, the generalization and formalization of existing approaches to the logistics costs accounting was made. Feasibility of using a process-oriented approach among other approaches (absorption costing, direct costing target costing, kaizen costing, etc.) were substantiated. The algorithm of identification and registration of logistics costs for Ukrainian enterprises was proposed. It is based on such inclusion in the relevant economic process (supply, production, sales and administration of logistics processes) and the use of a new consolidated account 29 “Logistics costs”. This authors’ approach to solving the problem of identification and registration of logistics costs for accounting purposes allows to optimize and increase the informativeness of accounting logistics costs reflection in Ukrainian accounting practice.

Kaizen Costing System and Product Cost Reduction: Evidence from Selected Manufacturing Companies in Osun State, Nigeria

Kaizen Costing System and Product Cost Reduction: Evidence from Selected Manufacturing Companies in Osun State, Nigeria

銀行内業務の集約・共通化による原価改善 ー原価企画的アプローチを視野においた考察ー

銀行内業務の集約・共通化による原価改善 ー原価企画的アプローチを視野においた考察ー

The Strategic Framework of Cost Management for Production Competitiveness: World Experience

Purpose of the article is to analyze the concept of production competitiveness and develop framework of cost management. A variety of cost management techniques requires the identification of their relationship with the requirements of operations management. Identified seven key concepts of operations management, analyzed their essence, information requirements. Systematized cost management techniques accordance with modern concepts of operations management such as: standart-costing, break-even analysis, direct-costing, life-cycle costing, target costing, value analysis, functional analysis, activity-based costing, sensitivity analysis, JIT-costing, kaizen costing, activity-based cost management, value-chain analysis. The aim of the article is the establishment relevance of costing methods with the key concepts of operations management companies.

Management Accounting and Control System

A larger entity of the cost management system which assists executives in fulfilling organizational objectives is known as management accounting and control system (MACS). It is used for planning, monitoring and control of different organizational activities, to optimize the use of resources, to support the process of decision making and to the performance evaluation process. The scope of the MACS can be divided into two broad groups: technical considerations and behavioral considerations. Technical considerations fall into two categories: (i) the relevance of information generated and (ii) the scope of the system like the value chain, total life cycle costing, target costing, kaizen costing, benchmarking, balanced scorecard etc. whereas the behavioral consideration involves individuals and their behavior within organizations.NCC JournalVol. 3, No. 1, 2018, Page: 153-166

IMPLEMENTASI KAIZEN TERHADAP EFISIENSI BIAYA PRODUKSI PT. DASA ANUGERAH SEJATI ASIAN AGRI JAMBI

The company through Kaizen costing to eliminate inefficient activity activities that occur in the company's production process Here, it can be seen clearly the role of Kaizen implementation to Efficiency of Production Cost (represented by Production Yield, Labor Cost, Material Cost and Transport Cost). The analytical method used is descriptive analysis to reveal facts of the object researched and SEM Analisys. The results showed that (1) the characteristics of Muda, Mura, and Muri and Efficiency of Production Cost is good; and (2) Implementation of Muda, Mura, and Muri together have a positive and significant effect on Efficiency of Production Cost PT. Dasa Anugerah Sejati - Asian Agri Jambi by 83%. The remaining 17% is influenced by other factors not examined. Implementation of Muda, Mura, and Muri have a positive effect on Production Cost Efficiency, meaning that high Efficiency of Production Cost is influenced by high implementation of Muda, Mura, and Muri. Keywords: Kaizen Costing, Efficiency of Production Cost, Production Yield, Labor Cost, Matherial Cost, Transport Cost, Muda, Mura, and Muri

Product Cost Management via the Kaizen Costing System: Perception of Accountants

Managing cost of production is at the heart of survival of present day corporations, as increased competition, uncertainty and risk present in the operating environment pose challenges for 21st century managers. This empirical paper examines product cost management strategies by adopting and implementing the Kaizen Costing System. The sample size of the study was 60 respondents comprising accountants distributed across product and service sector organisations in Anambra State, south-eastern Nigeria. Three hypotheseswere formulated and tested in the study. In addition to descriptive statistics, Mann-Whitney U, Kolmogorov-Smirnoff and Multivariate Analysis of Variance (MANOVA) were used in analyzing the primary data. The results ofthe data analysis showed that implementing a Kaizen Costing System would provide managers with strategies for reducing material procurement and usage costs, and also reduce labour utilization cost. Respondents also perceived a link between cost reduction strategies at the minimal batch production phase and the maximum batch production phase. Based on this, the study recommends that Nigerian manufacturing firms should adoptand implementthe Kaizen Costing System, this should however not be done in isolation as such a system would require corporate strategy overhaul and alignment, a kaizen culture was suggested as counterpart in the system implementation for incorporation at the strategic level.

Costing Methods: meta-analysis of articles presented in the Brazilian Congress of Costs over the 1994-2010 period

There are many bibliometrics studies that refer to costing methods. However, this research is scattered over the analyzed period, the place of publication and the publishing of the studies analyzed, as well as the longitudinal cut established, amongst other methodological design issues. The goal of this study is to compile and complement bibliometrics studies presented as to Activity Based Costing, Target and Kaizen Costing, Theory of Constraints and of Unity of Effort Production, using the first 17 editions of the Brazilian Congress of Costs (Congresso Brasileiro de Custos/CBC) as a database. Similarly to the methodological path of previous bibliometrics studies on the subject, a descriptive research was carried out alongside a quantitative approach, using the meta-analysis and the content analysis techniques. Results show that there is no regular distribution in articles published over the years, and that Activity Based Costing was the most researched, followed by the Theory of Constraints, and, finally, by Target Costing, Kaizen and Unity of Effort Production together. Results also indicate that books are still the main source of references for costing methods studies. The nature of the research approached practical and theoretical aspects; however, research focused on the various costing methods that made up the sample did not relate with each other.

Interactions between Kaizen Costing and Target Costing : A Case Study of Three Manufacturing Companies

Interactions between Kaizen Costing and Target Costing : A Case Study of Three Manufacturing Companies

Target and Kaizen Costing

Target and Kaizen Costing

Kaizen costing for lean manufacturing: a case study

In the past decade due to increasing global competition US firms have radically changed their manufacturing practices to improve their competitiveness. In pursuing this goal they have adopted a number of advanced techniques, such as just-in-time, total quality management, lean manufacturing, flexible manufacturing systems, process improvement, and design for manufacturability, to name a few. The objectives of all these programmes have been to reduce cost, improve quality, reduce cycle time, and increase flexibility on the factory floor. Support systems such as finance and cost management, however, have generally not kept pace with the level of corresponding operational changes being implemented. This paper presents a case study of kaizen costing as practised by Boeing Commercial Airplane Company, IRC Division. The purpose of this study is to describe a method used to set kaizen costs which will provide relevant cost data to support lean production decisions that would be useful to practitioners.

Cost & effect: using integrated cost systems to drive profitability and performance

Preface 1. Introduction: Cost and Performance Management Systems 2. Four-Stage Model for Designing Cost and Performance Measurement Systems 3. Stage II: Standard Cost and Flexible Budgeting Systems Appendix: GPK Cost System 4. Stage III Systems for Learning and Improvement: Upgrading and Supplementing Standard Cost Systems 5. Stage III Systems for Learning and Improvement: Kaizen Costing and Pseudo-Profit Centers 6. Activity-Based Costing: Introduction Appendix: ABC Activity and Process Dictionary 7. Measuring the Cost of Resource Capacity 8. Activity-Based Management: Operational Applications Appendix: Value- and Non-Value-Added Activities 9. Strategic Activity-Based Management: Product Mix and Pricing 10. Strategic Activity-Based Management: Customers 11. Strategic Activity-Based Management: Supplier Relationships and Product Development Appendix: Target Costing 12. ABC in Service Industries 13. Extending Activity-Based Cost Systems 14. Stage IV: Integrating ABC with Enterprise-Wide Systems 15. Stage IV: Using ABC for Budgeting and Transfer Pricing Notes Index About the Authors

An international comparison of manufacturing-friendly cost management systems

In this article, we perform an international comparison of cost management systems which have been claimed as manufacturing-friendly in U.S. and Japan. Specifically, we compare activity-based costing to target costing and kaizen costing, two of the most popular methods on the international horizon, regarding their relative merits in strategic cost management and operational improvement and control. A field study of a world-class Japanese auto maker, combined with an analysis of cost management literature, is relied upon to examine desirable characteristics of cost management systems that can avoid the problems many competitive manufacturers have encountered in satisfying management accounting information needs under rapidly changing market conditions in the global context.

Measuring Long‐term Performance for Advanced Manufacturing Technology: An International Perspective

New developments in the manufacturing industries require reexamining both the performance evaluation techniques and the concept of performance itself. As to evaluation, the return on investment model (ROI), popular during the 1950s throughout the 1970s, has faced much criticism that in the 1980s and the 1990s new financial and nonfinancial performance evaluation methods gained popularity. On a world‐wide basis, the increasing adoption of automation and the trend toward more centralization have changed the concept of performance. No longer based on motivating and directing the labor force, performance now aims to obtain the best results out of robotic assets and flexible manufacturing systems (FMS), which require new managerial attention and attitude. These factors have made the concept of performance more vague and difficult to define and measure. After comparing and contrasting how multinational and domestic companies evalu‐ate corporate performance, the study reconstructs the concept of performance, bringing forth fundamental propositions (axioms) of the long‐run dimension of measurement and utilization as the core of performance. Developing utilization as a dynamic concept with constantly changing components, a long‐term discounted‐cash‐flow return on investment (DCF‐ROI) model is developed and exhibited as a comprehensive measure of utilization. The DCF‐ROI model fits harmoniously into the mechanisms of the new cost reduction techniques of target and kaizen costing. Kaizen, a Japanese term, is translated into English as “improvement,” i.e., a continuous accumulation of betterment activities over the long run. Target and Kaizen costing are conditioned by top management's target profit which can take the form of a DCF‐ROI objective. This kaizen‐oriented DCF‐ROI is demonstrated as a moving average ratio that captures the dynamic utilization through its progression over ten years. Limitations of the model and recommendations for further research are also presented.