Even thought Kaizen costing have many advantages, the company will face several problems. The pit falls when apply Kaizen costing is resistance to change. Some companies need to bring about an immense change in their mindset and ways of functioning. This is sometimes very difficult which will create initial problem that lead to bad performance to the company itself. In addition, the company must have open style communication in order to make sure management style practice by the worker.
This is because there will be some worker are unwilling to let go their work areas as they feel unsafe and do not have any knowledge as well as experience to apply the Kaizen Costing. Moreover, lack of proper procedure to implement cause the pit fall of this technique. This is because during application of Kaizen costing in the company, they need to step up proper procedure so they can see the flow, achievement of the company and get the results they are looking for.
Lack of proper procedure will make them believe that the Kaizen costing is not give benefit to them as well as not the best practice. Lastly, too much suggestion may lead to confusion and time wastage. The key component of Kaizen costing is the identification of flaws in the system or areas in which a system can be improved. Kaizen costing is based on frequent small tweaks to cut costs and the managers need to micro-manage process. That will lead a total breakdown communication barrier between the managers and the employees.
The Essay on Company Profile of Executone Information Systems
Executone Information Systems, based in Milord, Connecticut, which designed and marketed telecommunications products for small-and medium-sized businesses, has become a major telecommunication company competing with AT&T and Northern Telecom since 1988. Because of economic recession in 1993, many companies had to change their product strategy to overcome this unbreakable situation. Not only ...
The managers and employees will have their own opinion regarding the way to improve the system. When there are too much suggestion it may cause of confusion and time wastage. There are few ways regarding to proceed Kaizen costing in a company which is in management, organization and employees. Firstly, the management needs to make an approachment and a mechanism to keep the management system on track and the activation of Kaizen activities. The management of the company must select a worker and train him to be a leader.
The selected worker must be attending the seminar or training about the Kaizen costing. So, he will manage to educate the other employees in each of company department regarding of Kaizen costing knowledge. The next step is in the organization itself by continuity of developing the entire Kaizen organization. The organization must give a membership to each of the employees so the rules and regulations can be made. Every employee is need to follow all the rules and regulation made by the organization so there will no excuse made by them to avoid using the Kaizen costing method.
Lastly in perfective of employees itself they need to change the way of thinking by understand the meaning of Kaizen and actively participate in Kaizen activities. The company also needs to get the employees opinion so they will know the feedback from the employees after using this technique. In the other way, the company needs to make seminar and training so it will be improve the knowledge of the employees about the Kaizen costing. In conclusion, Kaizen costing is the best practice.
This can be refer on the way it indentifying the problem at the source and from there they find solution been taken up. Kaizen costing believe that every single problem is the opportunities to the company to improve. Moreover, it provides immediate results. Kaizen costing focus on the smart and creative investment which it solve large number of small problems. It on going process in making small improvements which improve process and reduce waste in areas such as transportation, employee skills, over production and others.
The Term Paper on Assignment: Leadership and Cost Company
COST Company tried their best to grasp the sophisticated technology, thus the COST Company used highly to training the professionals, like the geologists, geophysicists, and the engineers. The COST Company also trained the skilled and semiskilled labor that run the company’s field operations. On the other hand the professional labor and the skilled labor, the two groups always occurs the clashed. ...
By this way it improves the use of capital, production capacity and product quality. On the other hand, based on the employee’s satisfaction, they feel very happy due Kaizen make their work becomes easier to complete and faster compare than before. There also higher the moral and job satisfaction of employee because Kaizen is easy to apply. And cause lower turn-over between the employees due to working experience that they received.
