Puzynya T.A. Target costing and kaizen costing are innovative concepts of domestic accounting

Kaizen costing

Kaizen is a philosophy of gradual improvement of quality and business processes, and Kaizen costing is a cost reduction tool that managers use to achieve target costs and ensure production profitability.

One of the most striking examples of how the Kaizen system works is the experience of Toyota, which developed the TPS production concept, widely known for its effectiveness. This concept creates all the conditions for preserving resources by eliminating unproductive losses, and one of its key elements is a system of continuous improvement in “small steps” - Kaizen.

The Kaizen philosophy involves the participation of all members of the large Toyota team, who actively put forward ideas and suggestions to improve manufacturing process. Toyota team members continually learn to be alert to unproductive waste; they identify those wastes of materials, effort and time that do not provide value and promptly eliminate them.

Recently, members of the Toyota team have been constantly putting forward useful suggestions related to improving TPS, especially in terms of reducing the harmful effects of cars on environment. Every year, thousands of team members make a real difference in quality improvements and cost savings, making production easier, safer and cleaner.

Kaizen activities in modern Japanese corporations are multi-vector. The “step by step” improvement philosophy is closely related to many of the concepts and methods we know. It is also inseparable from cost management.

It is believed that the three cornerstones of the Japanese cost management system are target costing, kaizen costing and the cost support function. The first to introduce such a “triple” Toyota system and now it is widespread in almost all industries in Japan.

The cost management system in the company, Toyota, allows you to organize and purposefully implement a cost reduction policy, rationally invest money in new products, coordinate the actions of many people involved in the production process, and work together to achieve your goals. (Appendix 4)

Both target costing and kaizen costing solve almost the same problem, but at different stages life cycle product and different methods. Both concepts are designed to reduce the level of individual cost items and the cost of the final product as a whole to some acceptable level, but if we divide the product life cycle into two parts - the planning and development stage and the production stage, then target costing solves this problem at the first stage, and Kaizen costing comes second. Together, both systems provide the company with very valuable competitive advantage, consisting in achieving a lower cost level in relation to competitors and the ability to choose a convenient pricing policy to capture/retain relevant market sectors.

Absorption costing

Absorption costing is a method for calculating the cost of products with the distribution of all costs between sold products and the remaining products in the warehouse. This method is called the total cost allocation or absorption method. When using this method, it is possible to adjust the amount of reported profit by changing the production schedule or the value of the base production volume taken to calculate the distribution coefficient of fixed overhead costs. This method is relatively often used at Russian enterprises. When using it, costs in the calculation process full cost(reserves finished products also valued at full cost) divided into direct and indirect This method in foreign countries They are considered a means by which the costs of producing a specific type of product and the costs of the enterprise itself are mixed. If large enterprise reduces sales volume, then when calculating using this method, the cost of production becomes higher. When allocating costs based on a selected base, there is always a distortion of the real cost individual species products. Due to unreasonable prices, the competitiveness of such products is undermined. This method can be recommended: when an enterprise produces products of one type or several types, but in a small volume; if the amount of overhead costs varies significantly from period to period; in the presence of long-term contracts to perform a certain amount of work. In the method of eliminating the costs of by-products, which are divided into main and by-products, the most important thing is to accurately estimate the by-products. The above provisions indicate that enterprises need to carefully consider which cost accounting methods and their calculation should be used.

The article discusses in detail such concepts as “kaizen”, which means one of the approaches to improving the company’s work, and “kaizen costing”, which has a more specific meaning and means ensuring the required level of product cost and searching for opportunities to reduce costs to a certain target level. Modern, modified types are analyzed, aimed at achieving indicators of “acceptable costs” with the help of continuous steps that help reduce the difference between the expected and target profit and, the most important aspect, responsible for actions that are responsible for improving the process of activity. The set “kaizen tasks” include achieving the final result, which can be achieved by reducing costs and must be equal to or exceed the indicators that were initially set in the “kaizen task”. Since employees’ achievement of the set indicators is additional motivation and incentive. The basis of the “kaizen goal” is the value of the target reduction of costs, which are determined by a long list of cost items and are based on variable costs. Requirements for the production process of the product, which must be established at high level. Actions of the team and the final analysis of the results of its work, deviations from the goal and its adjustments, conducting a general review. Avoiding common mistakes when conducting kaizen costing. Examples are given Russian companies who, taking advantage of the introduction of kaizen costing, were able to achieve improved performance in their field and become more competitive in the market for goods and services. The “kaizen costing” technique helps not only to cope with the problem of minimizing costs, but also to see such “cons” and “gaps” in the operation of an enterprise that cannot be detected when using other systems.

kaizen costing

kaizen tasks

cost minimization

cost reduction

costing system

manufacturing process

1. Atkinson E., Bunger R., Kaplan R., Young M. Management accounting. – M.: Williams Publishing House, 2000. – 878 p.

2. James Harrington. Process management excellence / trans. from English A.L. Ruskin; under scientific ed. V.V. Bragina. – M.: RIA “Standards and Quality”, 2007. – 192 p.

3. Masaaki Imai. Kaizen: The key to the success of Japanese companies / trans. from English – 2nd ed. – M.: Alpina Business Books, 2005. – 274 p. – (Series “Management Models of Leading Corporations”).

4. Matyukhin P.V. “Kaizen” is a key strategy of Japanese management / P.V. Matyukhin, V.O. Markov, P.V. Rabunets // International Journal of Applied and Fundamental Research. – 2009. – No. 5. – P. 108.

5. Imai M. The key to the success of Japanese companies / trans. from English – 5th ed. – M.: Alpina Publishers, 2011. – 274 p. – (Series “Management Models of Leading Corporations”).

6. Yasuhiro Monden. Toyota management system / trans. from English – M.: Institute of Complex Strategic Studies, 2007. – 216 p.

In today's rapidly changing world, under the influence of globalization, new requirements are constantly emerging in various areas of the economy and beyond. Thus, high rates of competition are forcing companies to look for completely new approaches to optimizing profits, in particular, by minimizing costs. The successful experience of many Japanese corporations has shown that the development of cost management techniques does not stand still. And in most cases, success in this area occurs thanks to the developed kaizen methodology, which consists of constantly moving forward, as well as finding all kinds of solutions in order to improve performance not only internal environment, but also the surrounding external environment organizations. It is also worth noting that in the last twenty years, such a feature as quality, which has always been very important for Japanese companies, began to be considered in the context of the field of cost management, where kaizen costing has already become quite firmly established. Thus, the “kaizen” system is, on the one hand, a simple tool, but at the same time quite complex, with the help of which costs are reduced and a production system favorable for people is created. That is why the article examines some methods of influencing the kaizen philosophy, both on the company as a whole and in more detail on its production process, examines examples and draws conclusions about the possible effectiveness of “kaizen” for Russian companies.

The concept of kaizen is quite broad - it can mean improvement in any cell of a person’s life (in the family, at work, in his social sphere). But in this article, the word “kaizen” is used to refer to the work process, which means that we are talking about improving this activity, and, moreover, not only one employee, but also all employees who directly work in this organization. Thus, the goal of kaizen is one of the approaches to improving the work of a company or its individual components.

As for the concept of “kaizden costing”, it has a more specific meaning. It means ensuring the required level of product cost and searching for opportunities to reduce costs to a certain target level. It is believed that if kaizen costing is used correctly, it can lead to a significant reduction in costs at the production stage. Unlike target costing, created in Japan based on the American concept of VE, or the TQM system, kaizen costing has exclusively Japanese roots. In the West, the philosophy of kaizen became known approximately in the second half of the 1980s, and books describing great importance kaizen in industrial companies. Also, when considering the concept of kaizen, it means the work of small groups of people working in “quality circles” in which they made and discussed their proposals for improving the work of a corporation or firm.

This understanding of kaizen existed until the mid-1990s, when Yasuhiro Monden introduced a new definition of “kaizen costing.” It meant a certain approach, closely interacting with target costing, but at different stages of the production process.

In his work, Monden described two types of kaizen costing.

The first type is aimed at achieving “allowable cost” indicators through continuous steps that help reduce the difference between expected and target profits.

The second type is responsible for actions that are responsible for improving the process of activity if, after 90 days from the date of release of a new product, the gap between target and actual costs has changed little or has not changed at all. For control this process a team is created (kaizen cost committee) that is engaged in functional cost analysis.

Monden presented kaizen costing in a cost management system in such a way that it began to mean a certain tool with the help of which production costs are reduced. Thus, the tandem of target costing and kaizen costing has developed into a single cost estimate for the entire production cycle of the product.

It is important to note that there are certain differences between standard costing and kaizen costing. Let's look at some of them.

If we compare the costing process in kaizen costing and in standard systems, then in the first case these activities are carried out monthly, thus eliminating the difference between current and target costs. Based on this, research is carried out and necessary amendments are made. As for carrying out calculations in standard systems, the methodology there is much simpler, since they are carried out only a few times a year (1-2 times) and adjustments are made only if costs exceed standard level, that is, constant monitoring is not carried out, which leads to frequent inconsistencies. Also, with the standard system, the emphasis is on maintaining existing production conditions, without taking into account their change.

If we return to kaizen costing, then the continuation of the process of its action after costing is to plan a goal for future costs. Thus, a difference arises between the desired and the actual. Then you should determine why this goal was defined and how to achieve it. The entire cost reduction strategy can be carried out in stages, since creating specific actions and activities at each stage can significantly simplify the task.

The date of the event when the committee or general meeting workers will make any adjustments and solve problems of inconsistencies, planned in advance, on a specific day. This is done to make it easier to make a final assessment of the effectiveness of actions. Employee proposals have their own status, so they can be: initiated, preparatory, final, confirmed or rejected.

Each employee contribution is determined by the benefit it brings to the company. Without conducting an effectiveness analysis, no proposal is accepted.

Taking a closer look at the two components of the cost management system - the target system and kaizen costing. How does their interaction occur and what is the benefit of their relationship?

Kaizen costing and target costing solve almost the same problem, but at different production stages and using different methods. Both systems are needed in order to reduce the level of individual cost items and the cost of the final product until a certain level is reached. Everything seems to be similar, but do not forget that the product life cycle is divided into two parts, such as the planning and development stage and the production stage. And in this case, target costing works at the first stage, and kaizen at the second.

Working together, they achieve an advantage over their competitors: costs are reduced in relation to other market players and thus they retain certain market sectors.

In this case, the idea of ​​target costing is to produce only that innovative product whose estimated cost will not exceed its target cost. If the difference between these two components remains, production of this product should not begin. What then to do if the gap is small? After all, the presence of a small difference should not be the reason for making a decision? In this case, kaizen costing comes to the rescue, because with its help this very difference is eliminated.

The effect of target costing and kaizen costing in the theoretical model is presented in Fig. 1.

Rice. 1. The influence of target systems and kaizen costing on cost and price curves

When the production of a generation t model reaches the point of the lowest possible cost, it is time to introduce the new generation t + 1 model to the market. The target cost of the new model will be significantly reduced using the target costing system at the design and development stage, and then at the production will gradually, in small steps, decrease in accordance with the so-called kaizen task. The life cycle (LC) of the generation t + 1 model will end when the minimum cost point is reached, after which the cost can only increase. Then the whole process will be repeated, only for next model generation t + 2, etc.

Consistent “connection” of target and kaizen costing to the cost reduction mechanism makes it possible to obtain exactly the total effect that is necessary to achieve the target cost, consolidation standard values costs and their support (control) at the production stage.

Thus, the consistent interaction of targeting and kaizen costing in the cost reduction system leads to the overall result necessary to consolidate the standard cost values ​​and control them and achieve the target cost.

Kaizen task does not have general definition, since it can have different meanings for different objects (factories, workshops, assembly lines, etc.). But the difference (which was mentioned earlier) that exists between the calculated and target costs is the “beginning” for solving a “kaizen task”. It plays an important role in the enterprise, since employees of Japanese corporations strive to ensure that the result achieved by reducing costs is equal to or exceeds the indicators set in the kaizen task. After all, this is an additional basis for remuneration for employees.

Due to the close relationship with the implementation of the business plan in the company and its industries, the development and implementation of kaizen tasks is a rather lengthy process. The production procedure for spare parts for the vehicle is checked annually. Both workers who directly perform and control the production process of the part, as well as planning department and Cost Management Department. At the end, when everything has been received annual reports and plans from the client, manufacturers take on their own budget (for the year).

Rice. 2. Mechanism for reducing costs in accordance with the kaizen task

The main components of a kaizen task are the target cost reduction values, which are determined from a long list of cost items, mainly variable costs, since fixed costs are not grouped with them, but separately and for each department of the company (division). Based on these data, the annual budget is determined. So, from April 1, a new budget begins its work, and the kaizen process is also included in the work at the level of groups of employees (quality circles), as well as individual employees, offering their interesting and effective ideas. All reporting year employees of the cost management department monitor performance results every month, compare intermediate cost reduction goals defined by the kaizen task, and monitor the implementation of budgets fixed costs.

Kaizen costing can be carried out through applications that can simplify this work. It happens like this: cost parameters are entered through the dialog box until the system approves the data entry, taking into account the specified parameters.

Once these steps have been completed, it may be necessary to conduct an overview to help focus on the steps that will help you achieve the best investment.

Also, at the stage of carrying out kaizen costing methods, it is necessary to take into account cost-functional analysis, which was introduced back in the 1950s. at General Electric L.D. Miles. He studies the functions of the product and its components. After determining the relationship between function and cost, it is easier to determine at what stage of product creation unjustified costs arise and what their scale is.

Common mistakes include attempting to conduct kaizen costing without taking into account the impact on customer value. This could be a big problem. The profit received can turn into a problem for the brand, and then the position in the market will be lost and customer dissatisfaction will increase.

So, taking into account everything that was described earlier, let’s highlight the main advantages of kaizen costing. Of course, firstly, this is to ensure continuous reduction of costs and keep them at a given level

Kaizen costing provides an opportunity for dialogue and creates a respectful atmosphere among those tasked with reducing costs that may often be viewed as non-value added. Investment analysis is now also available, since the basis for the calculations is determined in advance. Therefore, nowadays it all comes down to simply entering the relevant data, which can be carried out by a designated team.

The Kaizen costing technique is actively used in Japan, the USA and European countries, but, unfortunately, in Russia it has not become so widespread. But still, in Russia there are companies in which kaizen costing operates, and quite successfully. Such enterprises are: GAZ and KamAZ, equal to the already mentioned Toyota and Nissan. Also, besides the automotive industry, there are enterprises that embrace the concept of lean Agriculture: AgroHolding "Kuban" (Krasnodar region), OJSC "Priozernoye" ( Novosibirsk region), CJSC Biryuli and LLC Service-Agro (Republic of Tatarstan).

Summing up, it is important to note that the action of the kaizen costing technique in an enterprise transforms the entire production process into an innovative one, while at the same time maintaining a certain framework of pre-established restrictions.

Bibliographic link

Target - costing

The Target Costing system appeared in the 60s of the twentieth century in Japan. In the 80s it became widespread in the USA. Today it is widespread throughout the world, mainly in companies operating in innovative industries (automotive, mechanical engineering, electronics, computer, digital technologies) and the service sector.

Essence Target Costing applies at the design stage of a new product or modernization of obsolete products.

The idea of ​​Target costing is based on the concept of target cost and the formula for calculating it: Cost = Price - Profit.

Price is the market price of a product (service), which is determined using marketing research. Profit is the desired value that an organization seeks to obtain from the sale of a given product (service).

Target costing considers the cost not as an indicator calculated in advance according to standards, but as a value to which an organization must strive in order to offer the market a competitive product. Therefore, the task of Target costing is development of a product (service), the estimated cost of which is equal to the target cost. If a new product is such that it is impossible to achieve its target cost without compromising quality, a decision is made that the product will not be developed and put into production.

Kaizen costing, like Target costing, originated in Japan in the second half of the 1980s. The use of Kaizen costing is possible in almost any industry and, importantly, in conjunction with other cost management methods.

The essence of Kaizen costing(translated from Japanese as “improvement in small steps”) is the process of gradually reducing costs at the production stage, as a result of which the required level of cost is achieved and production profitability is ensured.

Kaizen costing is used in the Japanese management accounting model in parallel with Target costing. Both systems have the same goal - achieving target cost: Target costing - at the design stage of a new product, Kaizen costing - at the product production stage.

If at the design stage the difference between the estimated and target cost is up to 10%, then a decision is made to begin production of such a product with the expectation that 10% will be eliminated during the production process using Kaizen costing methods. Reducing the difference between estimated and target costs is called a kaizen task, which concerns all personnel of the organization from engineers to managers and the implementation of which is properly rewarded through the personnel management system.

The Kaizen task is determined at the planning stage for the next financial year, when production plans are developed. The Kaizen task is set both at the level of each product and at the level of the enterprise as a whole. individual articles variable costs. Fixed costs are calculated for individual departments and grouped into special budgets.

Using these kaizen tasks and fixed cost budgets, specialists draw up the enterprise’s annual budget.

Thus, you can see that there are quite a few methods for calculating the cost of finished products. It is important to clearly understand the differences between them, and also to understand exactly how the choice of one method or another will affect the financial result of the enterprise.

Target - costing

The Target Costing system appeared in the 60s of the twentieth century in Japan. In the 80s it became widespread in the USA. Today it is widespread throughout the world, mainly in companies operating in innovative industries (automotive, mechanical engineering, electronics, computer, digital technologies) and the service sector.

Essence Target Costing applies at the design stage of a new product or modernization of obsolete products.

The idea of ​​Target Costing is based on the concept of target cost and the formula for calculating it: Cost = Price - Profit.

Price is the market price of a product (service), which is determined using marketing research. Profit is the desired value that an organization seeks to obtain from the sale of a given product (service).

Target costing considers the cost not as an indicator calculated in advance according to standards, but as a value to which an organization must strive in order to offer the market a competitive product. For this reason, the task of Target Costing is development of a product (service), the estimated cost of which is equal to the target cost. If a new product is such that it is impossible to achieve its target cost without compromising quality, a decision is made that this product will not be developed and put into production.

Kaizen costing, like Target costing, originated in Japan in the second half of the 1980s. The use of Kaizen costing is possible in almost any industry and, importantly, in conjunction with other cost management methods.

The essence of Kaizen costing(translated from Japanese as “improvement in small steps”) is the process of gradually reducing costs at the production stage, as a result of which the required level of cost is achieved and production profitability is ensured.

Kaizen costing is used in the Japanese management accounting model in parallel with Target costing. Both systems have the same goal - achieving target cost: Target costing - at the design stage of a new product, Kaizen costing - at the product production stage.

If at the design stage the difference between the estimated and target costs is up to 10%, then a decision is made to begin production of such a product with the expectation that 10% will be eliminated during the production process using Kaizen costing methods. Reducing the difference between the estimated and target costs is usually called a kaizen task, which concerns all personnel of the organization from engineers to managers and the implementation of which is properly encouraged through the personnel management system.

The Kaizen task is determined at the planning stage for the next financial year, when production plans are developed. The Kaizen task is set both at the level of each product and at the level of the enterprise as a whole for individual variable cost items. Fixed costs are calculated for individual departments and grouped into special budgets.

Using these kaizen tasks and fixed cost budgets, specialists draw up the enterprise’s annual budget.

However, you can see that there are quite a few methods for calculating the cost of finished products. It is important to clearly understand the differences between them, and also to understand exactly how the choice of one method or another will affect the financial result of the enterprise.

- The role of the concept of goal-oriented performance in the cash flow management system, the principles of target costing. Topic 8. Methods for targeted formation of structural analysis and reduction of costs.
Nutrition for self-control 1. What benefits for business can be obtained from the protection of vitrat production?

2. Which product development obligations must be ensured for...

Globalization processes dictate new conditions for operators of the now global market for goods and services. Increasing competition forces Ukrainian companies to search alternative approaches to optimize profits, in particular by minimizing costs. The development of the Japanese cost management system does not stand still; it developed the kaizen technique, which became the key to Japan's competitiveness in the world market. The concept of kaizen is critical to understanding the differences between Japanese and Western approaches to cost minimization. Due to its high efficiency, this technique has been adapted and widely used by many leading companies around the world. Questions remain debatable regarding the possibility of implementing this concept at industrial enterprises in Ukraine in order to improve the cost accounting system and calculate the cost of industrial products in general.

It is important to note that the Kaizen technique has not yet been sufficiently studied by Ukrainian scientists. The attention of I. G. Smirnov, N. S. Nichitailova and O. V. Sadchenko focuses on this issue. For example, the work of Doctor of Geographical Sciences, Professor of Taras Shevchenko National University of Kyiv Igor Georgievich Smirnov “The experience of Japanese logistics and its application in Ukraine: from “kanban” to “gemba kaizen”” is well-known.

In the context of the above-mentioned problems, the purpose of the study is to reveal the essence of the Japanese concept of kaizen, as well as the prospects for its implementation in the Ukrainian cost management system, by identifying the key principles, advantages and disadvantages of kaizen calculation of the cost of industrial products. During the study, the following general scientific methods were used: historical and systematic approach, specification - to reveal the essence and characteristics of the principles of the kaizen system; analysis and synthesis, abstract-logical - to identify the main advantages and disadvantages of the Japanese concept under study; modeling – to determine the place of kaizen costing in the cost management system industrial enterprise.

results

The essence of the Kaizen technique

Today, in a highly competitive market, any delay in mastering the most advanced technologies is costly. Delaying the adoption of the latest cost management techniques can be just as costly. Until now, Western entrepreneurs have been slow to take advantage of the kaizen tools developed by Japanese companies. Moreover, many Western leaders They do not know at all about the existence of the kaizen strategy and the possibility of using it to increase their competitiveness.

"Kaizen" is translated as "improvement" (from "kai" - "change" and "zen" - "good") and is traditionally used to denote the process of continuous and gradual improvement, which is made possible through the active participation of all employees in the management economic activity companies. Thus, the essence of “kaizen” is improvement. The central idea of ​​this concept being explored is that not a day should pass without improvement in the company.

As Professor O. S. Vikhansky notes, companies that use this system increase the profitability and competitiveness of their business without making significant capital investments. Everyday improvements do not require large financial expenditures. To implement kaizen, it is simply necessary that all employees use their intelligence and concentrate their attention on the work at hand. In those companies where the Kaizen technique has already been implemented, every time a person sees an opportunity to do his job better, he must act and change the standards for performing individual operations accordingly.

As mentioned above, all enterprises in market globalization conditions face similar tasks:

• maximizing profits by minimizing all types of costs;
• sustainable development;
• providing advantages over competitors.

But while some enterprises achieve success in solving these problems, becoming market leaders, others are forced to constantly fight for survival.

Today, there are two main approaches to solving the problem of increasing the efficiency of an enterprise. The first, mainly supported by Western companies, is based on innovation - the use of the latest expensive technologies, as well as the investment of huge Money. The second, championed by Japanese global market operators, uses tools such as common sense, checklists and low-cost methods. This is what they call “kaizen”. The main differences between the two approaches under consideration are shown in Table 1.

Table 1. Comparative characteristics innovative approach and “kaizen” [Developed by the author based on 2]

It is advisable to note that Ukrainian enterprises are in no hurry to implement such a cost management system as “kaizen”. There are many reasons for this. Firstly, the lack of a theoretical and practical basis, clear examples of transformations, economic instability. Secondly, there are differences in mentality - Ukrainian employees are afraid and hostile to changes, especially drastic ones. However, today we can name examples of relatively successful application of the Kaizen technique in Ukraine.

Experience of using kaizen costing in Ukraine

In 2007, the Coca-Cola Beverages Ukraine company, headed by general director Marcel Martin began the introduction of kaizen costing or kaizen costing (methods for calculating product costs based on “kaizen”). The concept of “kaizen costing” was first introduced by Yasuhir Monden in the late 90s of the twentieth century. In Monden's presentation, kaizen costing takes the form of a tool that helps reduce product costs and is closely related to the company's cost management system.

From the very beginning, the company faced real difficulties - innovations did not find support among employees. However, the management approached the solution of the problem extremely seriously: trainers were invited, explanatory work was carried out at all levels. Today, more than 90% of the Ukrainian plant’s employees are involved in kaizen. The company occupies a leading position in its segment on the Ukrainian market.

It is worth noting that during the implementation of kaizen costing, Coca-Cola Beverages Ukraine was guided by three fundamental principles, namely:

• maintaining order;
• elimination of muda (from Japanese “loss”);
• standardization.

Maintaining order is a must effective management on cost management. Thanks to exemplary procedures, employees acquire and develop self-discipline skills, without which they are unable to create products or provide high-quality services to consumers.

Taking into account that losses are considered as a component of costs as a whole, their elimination is the most cost-effective way to increase labor productivity, as well as reduce production and other types of costs. The Kaizen technique emphasizes that reducing losses (costs) at each workplace will have a synergistic effect to minimize them throughout the enterprise.

The “just in time” approach is the basis for the use of kaizen costing

In turn, for the real elimination of losses, the use of kaizen costing in combination with the Japanese just-in-time system (JIT) approach, which has the goal of “... the constant pursuit of productivity by avoiding waste and losses,” is strongly recommended. . It cannot be called a cost calculation method. Most likely, this is a business philosophy that should be adopted in addition to the already existing full-fledged cost accounting system.

The JIT approach was first introduced at the Toyota plant in Japan in the 70s of the 20th century. Its essence was very aptly formulated by Western professor Hansen: “to supply the raw materials that are needed, when needed, and in the required quantities.” The advantages of this method of organizing inventory management are obvious: the turnover ratio increases, unrealized income decreases, losses are reduced, storage savings are important, etc.

Kaizen costing, as a way to identify losses and reduce costs, is closely related to the profit planning system and is based on determining the deviations of the actual cost reduction achieved from the planned one. The essence of the method is that improvements are carried out continuously, in small steps and without significant costs for their implementation. Continuous improvement cost reduction targets are set and applied monthly. Analysis of cost variances consists of comparing their target indicators with actual ones. It should be noted that when reducing the latter, the base is considered to be the actual cost of production for the previous period, and the target cost reduction norm is the ratio of the planned reduction amount to their base.

Thus, there is a process of continuous improvement, since the cost of each next period will be lower than the cost of the previous one, that is, this indicator will constantly improve.

The third of the above principles of kaizen costing is standardization. To manufacture products, perform work or provide services, a certain standard must be applied.

Comparison of kaizen costing with standard costing

Considering standardization as one of the principles of improvement, it must be emphasized that kaizen costing, only at first glance, has much in common with standard costing. As already noted, the basis of kaizen costing is the achievement of a given level of cost reduction, which is constantly adjusted in the direction of its further reduction. In the kaizen system, variance analysis is a comparison of target cost reductions with actual amounts of savings, that is, “deviations from deviations” are examined. This type of variance analysis can be called complex.

The standard-costing system keeps records of deviations of actual costs from standardized costs. The amounts of deviations are recorded on special accounts. At the end of the reporting period, deviations are written off to financial results. A simple variant of variance analysis is used. Next, a decision is made regarding the adjustment of established norms and standards.

It is advisable to indicate that all deviations in content can be divided into three groups (Table 2). Kaizen costing, like standard costing, is primarily aimed at identifying negative deviations, which, of course, are more characteristic of industrial companies.

Table 2. Classification of deviations [Developed by the author]

However, common to the product costing systems mentioned in the previous subsection is the idea of ​​controlling costs and results by comparing achieved (actual) results with certain targets. Since, in contrast to target costing (target costing of products), kaizen costing is used at the same stages of the product life cycle as standard costing, cost management will be faced with the question of either choosing one of these systems, or how to their integration.

Despite the fact that the logic of kaizen costing looks more progressive, these methods should not be opposed. Each of them is designed to solve certain specific problems, and each of the systems has its own advantages and disadvantages. The solution to the problem, in our opinion, is their integration, since there is every reason for this.

Thus, the implementation of kaizen costing should in no case exclude the standard costing system that has taken root in many Ukrainian enterprises. It is their interaction that will give a positive result, consisting in minimizing costs and correspondingly optimizing profits.

Modeling the interaction of kaizen and target costing

If standard costing and the kaizen costing under study can be used as an integrated option for determining cost, then the above-mentioned target costing (target costing), from the point of view of the product life cycle, is the predecessor of kaizen costing.

Target costing also originated in Japan; more than 70% of large Japanese enterprises have implemented this technique. It consists in preliminary determining the cost of an individual product, which is the difference between the target price and desired size profit per unit of production. .

These two methods pursue the same goal - achieving the target cost: target costing - at the design stage of a new product, kaizen costing - at the production stage. In other words, kaizen costing is a kind of continuation of target costing. It should be noted that just such a sequence of application of methods, in combination with the standard costing and just-in-time (JIT) approach discussed above, is very important for the company to achieve its goals of minimizing costs (Fig. 1).

Picture 1. The place of kaizen costing in the cost management system of an industrial enterprise [Developed by the author]

conclusions

Summarizing the above, it is necessary to emphasize that the main advantage of kaizen costing is the ability to ensure a constant reduction in costs and keep them at a given level. In turn, the main disadvantage is the need to motivate employees and corporate culture, which supports staff involvement in the company's activities. The process of continuous improvement can only be successful if favorable production conditions exist. To do this, you need to fulfill certain management requirements, in particular:

• formulate the strategy and tactics of the enterprise;
• develop a leadership style that promotes openness, trust and collaboration;
• maintain consistency of goals;
• develop an incentive system that will encourage cooperation;
• implement ongoing staff training programs;
• maintain a balance between short-term and long-term tasks.

It should be said that the study of methodological approaches to calculating product costs, in particular kaizen costing, allows us to outline real prospects and focus on the need for its implementation at industrial enterprises in both Ukraine and post-Soviet countries.

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