Kaizen Costing

Kaizen Costing creates a dialog and respect for those whose task it is to cut costs, which can often be viewed as reactionary and not value adding. The investment estimate is now available since the basis for making the estimate is determined in advance. Therefore it’s simply a matter of entering the relevant values, which can be done by the implementing group. Competence development is long-term and is directed toward events that occur earlier in the process. The result generates the ability to survive in the short term. Within a given framework, the investment estimate is distributed to those who are working with the issues so that they can focus at an earlier stage on the challenges that bear financial fruit. This also provides a solution to the problem of rewarding the group working with cost rationalization. Normally, the question is who contributed to what? The operator develops the idea, the designer implements the changes, and the buyers negotiate the new purchase price. Who has contributed to what? Who should get a bonus? With Kaizen Costing, every activity will be supported by a work team that shares the result.

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