1. Kaizen Costing

2. Kai Change Zen Better Change for Better

3. Indian Connection Small Drops of Water together Ultimately result in a lake

4. Implementing Kaizen- few rules  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

5. Kaizen Philosophy Approach to Traditional Organisation Kaizen Environment 1Attitude Let it go Continuous Improvement 2Employees Cost Assets 3Information Restricted Shared 4Interpersonal Commercial Human Relationship 5 Managerial Belief Routine Change 6 Management Culture Bureacratic Participative 7 Management Function Control Supportive 8 Management Stress Functional Cross Functional

6. Procedure For Implementation 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

7. Evaluation 0 Marks for no improvement made 0 to 30 Marks depends upon improvement tried but failed 30 to 50 Marks for small to moderate improvement 50 to 75 Marks for good improvement > 75 Marks for extraordinary improvement

8. Evaluation Other factors A Attitude S Safety T Productivity E Energy Saving M Money Saving

9. Change in Attitude

10. Benefits of Kaizen Tangible Benefits Reduction in Production Time Reduction in Rejection Energy Saving Improved Quality Intangible Benefits Motivation Team Building Sense of belongingness Environment conservation Change in attitude

11. Lessons for Failure Lack of interest and support from management Lack of training of Listening skills, Presentation Skill, Communication Skill Criticism of failure from fellow members Ignoring Basic Concept ( Improvement is part of daily routine) Work Pressure -sidelining the Kaizen

12. Kaizen Costing

13. Cost Reduction in  Design of the Product  Development of the Product  Production Of the Product

14. 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 KC is applied to product that is already under Production Time prior to KC is Target Costing

15. Product Specification Price Targets Profit Targets Cost Targets Major Product/Process Changes Does Design Meet Target Costs? Estimated Life Cycle Cost Are Life Cycle Costs Acceptable ? Start Production Minor Product/Process Changes Product Scrapping Product Planning Phase Life Cycle Costing Production Phase Scrapping Phase

16. Cost Reduction by 5%

17. Kaizen Costing Calls Establishment of cost reduction target amount and its accomplishment through Kaizen activities---continuous improvement

18. 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