Kaizen Budgeting

What is Kaizen Budgeting?

Kaizen Budgeting is a methodology used in adding quality on the final product through continuous improvement in processes used which end up reducing the average cost of production.

Kaizen Budgeting applies where the focus is reduction of the cost incurred on a product.

Why is Kaizen Budgeting necessary?

Kaizen Budgeting is necessary to increase competitive edge of an organization.

How does Kaizen Budgeting work?

Kaizen Budgeting works as follows, the management identifies the specific planned improvement project, then locate possible areas that require improvement leading to cost reduction.