Page 276 - DCOM206_COST_ACCOUNTING_II

Unit 14: Emerging Concepts in Cost Management

Notes
Figure 14.5: Kaizen Estimates

Figure 14.6: Kaizen Costing

 Who are the suppliers for the component in question and how great is their added value?
If a few of the suppliers own a large amount of the purchase value, it might be wise to test
their willingness to work on costs.
 Are there blank spaces in the specification where there is a lack of experience and the final
product specification consisted of an ad hoc technical solution?
 What can be done concerning logistics, packaging, investment, etc.?
 Can improvements be made in the purchasing function?

 What about production, maintenance, planning, etc.?
 Can the work be organised differently?
 Do we have the right customers?

LOVELY PROFESSIONAL UNIVERSITY 271