Download - Kaizen Costing
Kaizan CostingKaizan Costing
Presented By:-Presented By:-
Ankit Mathur (09-F1-103)Ankit Mathur (09-F1-103)
Hemant Sharma(09-F1-106)Hemant Sharma(09-F1-106)
Maninder Singh (09-F1-110)Maninder Singh (09-F1-110)
Yatin Goel (09-F1-135)Yatin Goel (09-F1-135)
Kai Change
Zen Better
Change for Better
Indian Connection
Small Drops of Water togetherUltimately result in a lake
Implementing Kaizen- few rules
List your own Problems
Grade problems as to minor, difficult and major
Start with the smallest minor problemMove 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
Kaizen Philosophy
Approach to Traditional Organisation Kaizen Environment
1 Attitude Let it go Continuous Improvement
2 Employees Cost Assets
3 Information Restricted Shared
4 Interpersonal Commercial Human Relationship
5 Managerial Belief Routine Change
6 Management Culture Bureacratic Participative
7 Management Function Control Supportive
8 Management Stress Functional Cross Functional
ProcedureForImplementation
Form small groups from 6-10 personsGive them numbers-Kaizen 1,Kaizen-2…Appoint an evaluator of the groupArrange weekly meetings of group (6-12 months)Submit progress of improvement in writingAllow each member to expressNo disturbance when others are speakingHowever Clarifications can be sought instantantly
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
EvaluationOther factors
A Attitude
S Safety
T Productivity
E Energy Saving
M Money Saving
Change in Attitude
Benefits of Kaizen
Tangible Benefits
Reduction in Production Time
Reduction in Rejection
Energy Saving
Improved QualityIntangible Benefits
MotivationTeam BuildingSense of belongingnessEnvironment conservationChange in attitude
LessonsforFailure
Lack of interest and support from management
Lack of training of Listening skills, Presentation Skill, Communication Skill
Criticism of failure from fellowmembers
Ignoring Basic Concept ( Improvement is part of daily routine)
Work Pressure -sideliningthe Kaizen
Kaizen Costing
Kaizen Costing
Cost Reduction in
Design of the Product Development of the Product Production Of the Product
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
Product Specification
Price Targets
Profit Targets
Cost Targets
Major Product/Process Changes
Does DesignMeet Target
Costs?
Estimated Life Cycle Cost
Are Life Cycle CostsAcceptable ?
Start Production
Minor Product/Process Changes
Product Scrapping
ProductPlanningPhase
LifeCycleCosting
ProductionPhase
ScrappingPhase
Cost Reduction by 5%
Kaizen Costing Calls
Establishment of cost reduction target amount and its accomplishment throughKaizen activities---continuous improvement
Kaizen Costing
Product Development,Design &Manufacturing
Target Costing
KaizenCosting
Training, Learning Before goal of Target Costingor Kaizen Costingis imposed on the Organisation
5 “S”5 “S”
SEIRI – SORTING SEIRI – SORTING
SEITON – STRAIGHTENING / SETTING IN ORDERSEITON – STRAIGHTENING / SETTING IN ORDER
SEISO – SWEEPING / SHINING / CLEANLINESSSEISO – SWEEPING / SHINING / CLEANLINESS
SEIKETSU – SUSTAINING THE DESCIPLINESEIKETSU – SUSTAINING THE DESCIPLINE
OPTION – SAFETYOPTION – SAFETY
TWO ELEMENTS OF KAIZENTWO ELEMENTS OF KAIZEN
IMPROVEMENT / CHANGE FOR BETTER IMPROVEMENT / CHANGE FOR BETTER
ONGOING / CONTINUITY ONGOING / CONTINUITY
KAIZEN BENEFITSKAIZEN BENEFITS
Problems are identified at source and resolved. Problems are identified at source and resolved.
Small improvements can add major benefits.Small improvements can add major benefits.
Improvements lead to changes in quality, cost and delivery of Improvements lead to changes in quality, cost and delivery of
product.product.
Greater level of customer satisfaction and business growthGreater level of customer satisfaction and business growth
Improved morale of employees.Improved morale of employees.
METHODOLOGY OF KAIZENMETHODOLOGY OF KAIZEN
Finding Pain areaFinding Pain area Analyzing pain areaAnalyzing pain area
Finding solutions Finding solutions ImplementationImplementation
Comparing old situation and new situation Comparing old situation and new situation Writing and displaying the same Writing and displaying the same
Explaining KaizenExplaining Kaizen Reward givenReward given
FINDING THE PAIN AREA – 3 MFINDING THE PAIN AREA – 3 M
MURA = Inconsistencies in the system “ One side is MURA = Inconsistencies in the system “ One side is OK ; the other side is not OK”OK ; the other side is not OK”
MURI = Physical StrainMURI = Physical Strain
MUDA = Wasteful activity or obstruction to smooth MUDA = Wasteful activity or obstruction to smooth
flow of an activityflow of an activity
Activity = work + MudaActivity = work + Muda
Expenditure = Cost + WasteExpenditure = Cost + Waste
IMPROVE WHAT YOU MAINTAIN……..IMPROVE WHAT YOU MAINTAIN……..
MAINTAIN WHAT YOU MAINTAIN WHAT YOU IMPROVE !!!!!IMPROVE !!!!!
KAIZEN PRINCIPLESKAIZEN PRINCIPLES
Get rid of all old assumptions Get rid of all old assumptions Don’t look for excusesDon’t look for excuses
Say “NO” to the status quoSay “NO” to the status quo Don’t worry – Start NOWDon’t worry – Start NOW
KAIZEN does not cost money KAIZEN does not cost money Ask “WHY” 5 timesAsk “WHY” 5 times
Look for wisdom from ten people, not 1 Look for wisdom from ten people, not 1 Never STOP doing KAIZENNever STOP doing KAIZEN
WHY TO DO KAIZEN???WHY TO DO KAIZEN???
To remain competitive, we need to change for better.To remain competitive, we need to change for better. If we do not move forward, we will move backward.If we do not move forward, we will move backward.
To make our jobs easier and safer. To make our jobs easier and safer. To improve customer service and keep them happy.To improve customer service and keep them happy.
To work smarter, not harder To work smarter, not harder To improve productivity and qualityTo improve productivity and quality
To achieve organizational growth To achieve organizational growth To become world classTo become world class
WHEN TO DO KAIZEN???WHEN TO DO KAIZEN???
When there is – When there is –
Pain area for individualPain area for individual
Pain area for organizationPain area for organization
Dissatisfaction over working methodDissatisfaction over working method
WHERE TO DO KAIZEN ???WHERE TO DO KAIZEN ???
One’s own working area- RoutineOne’s own working area- Routine
Common relevant area – DepartmentsCommon relevant area – Departments
Other’s work area – Canteen, ReceptionOther’s work area – Canteen, Reception
One’s own personal area – HomeOne’s own personal area – Home
HOW TO DO KAIZEN???HOW TO DO KAIZEN???
Use who, what, where, when, why and how for every Use who, what, where, when, why and how for every pain areapain area
Ask “why” question 5 timesAsk “why” question 5 times
Use CARES- combine, add, rearrange, eliminate, Use CARES- combine, add, rearrange, eliminate,
simplifysimplify
Use PDCA – Plan, Do, Check, ActUse PDCA – Plan, Do, Check, Act
TTHANHANK YOK YOUU