Kaizen costing
In this lesson, you'll learn what Kaizen costing is and how it differs from Target Costing—specifically, how it drives continuous, incremental cost reductions once a product enters full production.
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In this lesson
- 0:00 Introduction to Kaizen Costing
- 0:24 Kaizen Costing Process and Steps
- 1:13 Practical Examples and Cost Reduction Areas
- 2:34 Organisational Requirements for Success
- 4:38 Key Elements for Continuous Improvement
- 7:01 Kaizen versus Standard Costing Comparison
About this lesson
You'll explore the practical methodology: setting target cost reductions, forming improvement teams, identifying small efficiency gains, and monitoring progress with regular comparisons to actual costs. The video covers the organisational conditions needed to make Kaizen work—employee empowerment, blameless culture, senior management commitment, and strong communication—and compares Kaizen costing to standard costing, highlighting why Kaizen motivates ongoing improvement rather than simply meeting a fixed standard. This is essential for Performance Management and Advanced Performance Management papers, where you'll need to discuss implementing Kaizen in case study scenarios and explain its advantages in cost reduction strategies.
Duration: 9m
Transcript
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