An application for reduction of the non-value activities by Kaizen costing method in the Kentau Transformer Plant

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Abstract

Businesses that plan to protect and maintain their assets in increasingly competitive global environment focus on activities that do not create value and reduce the cost of these activities to produce high quality at low cost. Kaizen costing method plays an important role in reducing and eliminating these activities. The main purpose of application in this context is to determine whether the Kaizen costing method has an effect on reducing or eliminating production losses as an activity that does not create value in a transformer producing enterprise. In addition, the effect of Kaizen costing method on production costs was researched in the study, thus saving costs. The effect of Kaizen costing method has been applicated in Kentav Transformer Plant with a semi-structured interview method in order to achieve these goals and objectives, that is, in reducing the activities that do not create value in the production process and saving in production costs. In the research, only the losses in the production process are focused, and activities that do not create value other than production losses are excluded. As a result of the research, it can be said that Kaizen costing method has a positive effect in reducing production losses (defective products, faulty products, wastage and residuum) and saving in production costs.

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