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Chapter 13

Kaizen costing

3.1 What is Kaizen?

A Japanese term for the philosophy of continuous improvement via
small, incremental steps.

Characteristics:

1 Set standards and then continually improve these

2 Eliminate waste

3 Improve processes, systems and productivity

4 Team working and employee empowerment

Organisation can respond quickly to changes in the competitive
5
environment

Illustrations and further practice

Now read Illustration 2 from Chapter 13 of the Study Text

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