Kaizen costing

This refers to a continuous quality improvement philosophy originally implemented in Japanese manufacturing industries.

The philosophy seeks daily incremental improvements, typically through the participation of all staff, with every team member involved in improving the work of their team and the quality of their production. Techniques used within the Kaizen philosophy include the Deming cycle of standardisation, measurement, review and re-standardisation, and root cause analysis often refers to the analysis of data against the mean average for that data and its standard deviation (how spread out the data is).

Kaizen costing is a term normally found in performance management, management accounting and strategic management.

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