The intent of my article is to allow the directors know about a costing method, which applied even in the current crisis, will non merely take to an turning away of bankruptcy, but may take to even do a net income by bettering fight and fiscal efficiency.
Quality means to continuously run into the clients ‘ demands, entire quality means to continuously run into the clients ‘ demands in footings of lower limit cost, and entire quality direction ensures to continuously run into the clients ‘ demands in footings of lower limit cost, affecting all employees.
The chief aim of this research is to place a solution to lasting addition of production quality while cut downing cost and clip of selling. To accomplish this end, we conducted a theoretical cardinal research, through which I tried to permute several characteristics of Nipponese direction program for a new costing method.
With no purpose to wash up the bounds of thissubject affair, I made entreaty in my scientific attack to a strict survey of the literature and analyzed assorted points of position raised by specializers in this field. I made entreaty to research methods such as certification, analysis, synthesis. Premises, methodological analysis attack and the consequences are my ain parts.
Care and betterment are two inseparable constructs in Nipponese direction. Improvement is assessed by two footings: kaizen and invention.
Kaizen is a Nipponese direction construct launched by Masaaki Imai, which proved to be the key to Nipponese competitory success. The significance of this construct is: KAI = Change and ZEN = for better, and the interlingual rendition is “ uninterrupted betterment ” , that means little betterments to the on-going attempts. Unlike the Western construct, connoting entire alteration, at big intervals of clip, utilizing big sums of resources and a high cost degree, Kaizen Costing seeks daily, gradual, slow, but uninterrupted betterments, which take topographic point at minimum cost.
Kaizen Costing message scheme is that a individual twenty-four hours should non go through without an betterment to step in in the activity of each employee or each entity. The Japanese have shown that by using this scheme, betterment is achieved with minimum outgo. Specific features that guarantee successful attack of Kaizen activities are the undermentioned:
neglects all thoughts implemented so far in the organisation of production ;
rejects the whole existing state of affairs ;
it does non look for flawlessness, seeking a 40-50 % betterment of the existing state of affairs, but at an acceptable cost ;
allows any director to utilize their cognition and personal accomplishments ;
the thoughts produced by many people are better than the thoughts of a individual individual ;
the betterments have no bounds.
Cost is one of the basic man-made indexs that characterize the effectivity of an entity ‘s activity. The importance of production cost is related to “ the maps it fulfills in the context of economic-financial mechanism, schematically showing itself as follows: ensures the recommencement of production, measures the agency of production and labor, allows the computation of some efficiency indexs and the existent cognition of activity quality, sizes the profitableness of economic entities, etc. ”[ 1 ]
Kaizen Costing Management is focused on bettering each procedure of a technological merchandise sheet, the chief end being eliminating losingss and minimising costs. Process betterment ensures production efficiency, kaizen type activities guaranting maximization of merchandise value matching to the demands of the donee, a qualitative distinction of this. There are eliminated all those maps of the merchandise which the client has no involvement in and which bring a cost addition without a letter writer in value.
aˆzThe KAIZEN rules presumes a practical attack and low costs of betterment. The Kaizen direction system is based on the uninterrupted loss decrease by agencies of methods that do non trust on investings, but on the betterment of the procedures and the employees’performance. Harmonizing to the Kaizen rules, we must be certain that, when we take an action, our action will travel on in the best possible manner and is non simply an intermediate action to bring forth a impermanent consequence ”[ 2 ]
Invention is achieved by sudden alterations and generates extremist betterments, compared to the initial state of affairs, which is due to important investings in engineering, public presentation and equipment. Figure no. 1 shows the differentiation between invention, kaizen and care:
Beginning: Imai 1997
Figure no. 1
Therefore, “ Imai ( 1997 ) describes that the betterment can be divided into Kaizen and invention. Kaizen signifies little betterments as a consequence of ongoing attempts. Innovation involves a drastic betterment as a consequence of big investing of resources in new engineering or equipment. The writer besides explains that in the context of Kaisen, direction has two major maps: care and improuvement. Care refers to activities directed towards keeping current engineerings, managerial and operating criterions, and continuing such criterions through preparation and subject. Under its care map, direction performs its assigned undertakings so that everybody can follow standard operating process. ”[ 3 ]
Thomas M. Fischer and Jochen A. Schmitz K in “ Control Measures for Kaizen Costing-Formulation and Practical Use of the Half-Life Model ” considered that “ Kaizen costing focal points on uninterrupted decreases of costs, which should be realized for bing merchandises in a company. For be aftering and control intents, comprehensive and efficient tools for mensurating public presentation are required ”[ 4 ].
In implementing Kaizen Costing scheme, directors rely on other techniques, methods and tools such as: quality circles, suggestions system, kanban, entire productive care, action programs, etc. The success of this scheme is capable to a figure of alterations in the entity ‘s civilization and value system on which it is based.
Proposing little stairss scheme, Kaizen Costing is a construct of “ umbrella ” which treats the basic methods and constructs applied in quality direction in Japan and whose value is recognized worldwide ( Figure no. 2 ) .The high quality of the construct stems from the fact that, by using little stairss scheme, the necessary resources are undistinguished, while the schemes based on inventions involve immense investings, although the consequences are comparatively the same. In add-on, Kaizen brings in the head the employees of the entity, who are motivated to take part consciously and responsibly to accomplish the aims of the entity. In this procedure the most of import dimension is the organisational one, the ability to pass on. Successful execution of this attack is given by the proficient and managerial cognition, set together, and by the across application of some direction tools ( ABC, benchmarking ) .
Beginning: hypertext transfer protocol: //afr.kaizen.com ; Imai ( 1986 )
Figure no. 2.
The execution of Kaizen Costing direction system in economic organisations in our state would convey immediate additions by extinguishing waste and losingss, increasing labour productiveness by 20-30 % , cut downing operating costs by 15-20 % , cut downing used countries, cut downing the equipment demands and increasing the usage of the staying, increasing staff motive. Kaisen Costing focuses the entity involvement and attending on those topographic points where you can cut down costs, this means on runing the production procedure and its development in the most efficient manner. Unlike Target ( used by design staff before the merchandise is in production ) , Costing Kaizen Costing is used by production staff during merchandise industry. Both follow the same mark, but they differ in the method of settling the mark: on position, Target Costing is based on client considerations, while Kaizen Costing is based on profitableness marks imposed by director.
As a method of cost computation and resizing, Kaizen Costing represents the look of returning to the beginning, through the causes of public presentation and the roots of productiveness, what is possible in a cross-viewing, and executing a procedure analysis under the ABC Method. “ Cost decrease attack consequences by comparing the target-cost to the estimated one, and is fulfilled in footings of value, through an iterative procedure of uninterrupted betterment. ”[ 5 ]
Therefore, Kaizen Costing is non interested in the merchandise but in fabrication procedure, which is more than merely a cost method, but a planetary direction tool.
Obviously, there are factors that hinder execution and obtaining good consequences in Rumanian entities. Among them the most influential one is the outlook, or psychological profile of Romanians, which do non promote the accomplishment demands of such direction, but there is great unfavorable judgment refering the emphasis staff has to cover with.
In decision Kaisen Costing is the ideal direction system to cut down costs. Through the application of this direction manner in managerial accounting, entities with limited resources could significantly extenuate the negative impact of current economic and fiscal crisis. As Masaaki Imai shows, “ Restructuring or reinventing your company can be destructive, expensive and frequently inoperable. Using Kaizen in gemba ( occupation, where the action occurs ) , important betterment is achieved with low costs in nucleus concern processes – production and services – and can be obtained, as ne’er before, major springs in client satisfaction, in quality, productiveness and profitableness. ”
For those who want to larn and use this direction system, I mention the undermentioned advantages: execution costs are reduced, as Kaizen makes better usage of bing resources and does non necessitate big investings in bettering engineering, staff preparation costs are lower than for other methods, in Romania there are confer withing houses in the field, entities that have implemented Kaizen have achieved singular consequences in labour productiveness, in cost decrease and competitiveness addition.