How does kaizen costing differ from standard costing

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Reference no: EM13949767

Paulan Motors Division had been given the charge to reduce the delivery time of its tractor motors from three days to one day. To help achieve this goal, engineering and production workers had made the commitment to reduce setup times. Current setup times were 15 hours. Setup cost was $100 per setup hour. For the first quarter, engineering developed a new process design that it believed would reduce the setup time from 15 hours to 10 hours. After implementing the design, the actual setup time dropped from 15 to 9 hours, one hour more than expected. In the second quarter, production workers suggested a new setup procedure. Engineering's evaluation of the suggestion was positive, and it projected that the new approach would save an addi- tional hour of setup time. Setup labor was trained to perform new setup procedures. The actual reduction in setup time based on the suggested changes was 2.5 hours.

Required

1. What kaizen setup standard would be used at the beginning of each quarter?

2. Describe the kaizen subcycle using the two quarters of data provided by Paulan.

3. Describe the maintenance subcycle using the two quarters of data provided by Paulan.

4. How much non-value-added cost was eliminated by the end of two quarters?

5. How does kaizen costing differ from standard costing?

Reference no: EM13949767

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