Keywords: cost management, Japanese manufacturing, kaizen budgeting, kaizen value distribution model
A kaizen budgeting model
In addition to high quality, low cost and frequent on-time delivery, management accounting methods have been shown to be factors behind Japanese manufacturing excellence. A prominent example is Toyota's cost management system based on kaizen budgeting. In this paper, a quantitative model based on linear programming is developed as a decision support tool for determining the distribution of kaizen values through company processes and plants.