Japanese Cost Management

The following sections are included:

• Preface

• Contents

• List of Contributors

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The following sections are included:

• Introduction
  • The purposes of Part 1
  • Points of view for consideration
    • The existence of cost reduction by historic company reorganization
    • Cost reduction by government or industry group participation
    • Cost reduction in relationships between companies today
    • The existence of overlapping relationships between companies

• Strategies of Relationships Between Japanese Companies
  • Strategic decision-making for cost reduction in the manufacturing industry
  • Relationships between recent companies reported in the newspaper
  • Terms of relationships between companies
  • The purposes of relationships between companies
  • Partners in relationships between companies
  • Motives behind the combination of enterprises
  • Cost reduction strategies in relationships between Japanese companies
    • Cost reduction and ILC/PLC
    • Cost reduction for new investment, research and development expenses
    • Strategy reduction of manufacturing costs
    • Sales, management costs and distribution costs
  • Relationships between companies
    • The semiconductor industry
    • The automobile industry
    • The chemical industry
    • The metal, textile, sugar, pulp and cement industries

• Conclusion

• References

The following sections are included:

• The Structure of Strategic Cost Reduction in Japan Today
  • Cost reduction strategies by industry groups and company groups
    • Cost reduction led by the industry groups
    • Cost reduction in company groups
  • Cost reduction in industry as a whole by government participation
  • Functions of Industrial Structure Council

• Case Study of the Automobile Industry

• Cost Reduction in the Iron and Steel Industry
  • Plans for rationalization
  • The limits of co-operation and the MITI's change of function
  • Merger of the Yahata Iron Manufacture and the Fuji Iron Manufacture

• Mutual Relationships between Government and the Industry Group
  • The chronological continuation of behaviour patterns of the companies, the industry groups and government
  • Relationships between companies during industrial rationalization
  • Techniques in cost reduction of the industrial group

• Conclusion

• References

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The following sections are included:

• Introduction

• Basic Research, Applied Research and Development Research

• Evaluation of Research and Development Activity
  • Evaluation of basic research stage
  • Project evaluation in applied research
  • Evaluation at the development research stage

• Cost Management in Research and Development Activity
  • Significance of research and development expenses budget
  • Managing the allotment of R&D costs
  • Compilation of the research and development expenses budget
  • The importance of basic research

• Decision of Total Budget for Research and Development Expenses
  • From the required number of research personnel
  • Research and development expenses ratio to sales
  • New product sales targets
  • Project portfolio management
  • An example of how a budget is compiled

• Budget Distribution to Projects and to Subjects
  • Evaluation of projects

• The Execution and Management of R&D
  • Management by segment

• Conclusion

• References

The following sections are included:

• The Current State of Research and Development of Pharmaceutical Manufacturing Companies in Japan

• The Environment Around Japanese Pharmaceutical Companies
  • Problems of pharmaceutical research and development

• Examination of Each Company Individually

• Patterns of Research and Development Management in Pharmaceutical Companies in Japan

• Management Accounting for Excellent R&D Activity
  • The characteristics of management by objectives in R&D
  • Matrix system and project management as organizational control

• The Possibility of Activity-Based Management in R&D in Japan

• Conclusion

• References

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The following sections are included:

• Introduction

• Features of Target Costing

• The System of Target Costing
  • Corporate planning
  • Developing the specific new product project
  • Determining the basic plan for a specific new product
  • Product design
  • The production transfer plan

• Features of Kaizen Costing

• Computation of the Target Amout of Kaizen Cost

• Kaizen Costing Through “Management by Objectives”

• Motivational Considerations in Total Cost Management

• Summary

• References

The following sections are included:

• Introduction

• Research Variables

• Research Method
  • Unit of analysis
  • Sample selection
  • Data collection
  • Profile of products and product development processes in the sample

• Part Price, Part Cost and Assembly Hour Tables

• Design Reviews

• Supplier Involvement

• Conclusion

• References

The following sections are included:

• Introduction

• The Necessity of Simultaneously Examining Quality and Cost

• The Characteristics of QFD

• Simultaneous Considerations of Quality and Cost by QFD
  • An example of simultaneous consideration of quality and cost
  • Another example of simultaneous consideration of quality and cost

• Advantages and Problems in the Application of QFD

• Summary and Remaining Problems

• References

The following sections are included:

• Introduction

• Quality Function Deployment (QFD)

• Value Engineering (VE)
  • The value engineering job plan

• Comparison Between QFD and VE

• Issues to be Addressed
  • Trade-off relationship between quality and cost (P)
  • Cost improvement objects (C)
    • QFD approach to identify the cost improvement objects (C_QFD)
    • VE approach to identify the cost improvement objects (C_VE)
  • Bottleneck engineering (B)
  • Model change versus entirely new products

• Analysis of the Results
  • Quality performance
  • Cost performance
  • Simultaneous achievement of quality and cost
    • Model change product
    • Entirely new product

• Conclusions

• Proposals to the Practitioners

• References

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The following sections are included:

• Introduction

• The Just-In-Time System

• Foundations for Implementing JIT
  • Production smoothing philosophy
  • Work standardization
  • Setup time reduction
  • Appropriate machine layout

• Components of JIT
  • JIT “pull” production
  • Autonomation and total quality management
  • Multifunction and flexible workforce
  • Focused supply chain

• Kaizen Activities — Engine for Advancing JIT

• Wastes Elimination and Cost Reduction Framework of JIT

• Conclusion

• References

The following sections are included:

• The Aim of Kaizen Costing is Different

• Kaizen Costing: Plant Cost Improvement System

• Determination of Cost Reduction Targets

• Changes in Target Rates
  • A design change in the middle of the year
  • The alteration of mixed model production

• Kaizen Costing: Strengths and Weaknesses

The following sections are included:

• TPM and Cost Management
  • The origin and definition of TPM
  • Cost management in TPM
  • Cost management in preparing the introduction of TPM

• Measuring Maintenance Activities to Manage in the Production Department
  • Measuring autonomous maintenance activities to manage
  • Cost management for individual improvement
  • Individual improvement and Kaizen costing
  • Measuring and managing activities in maintenance department

• The Cost Management for Quality Maintenance, Safety, Hygiene and Environments

• Summary

• References

The following sections are included:

• Introduction

• Positioning of Standard Costing

• Influence of Environment Change on Standard Costing
  • A change of market and manufacturing environment
  • Factors reducing the importance of standard costing due to a change in the manufacturing environment

• The Opposite Results of Automation and Human-Centered Manufacturing System

• The Japanese Standard Cost Management System

• Setting Hypotheses for Standard Costing

• Analysis of Survey Results
  • Survey introduction
  • The tightness and purpose of standard costs
  • Automation and efficiency management of standard costing
  • The relationship between high-variety/low-volume production and standard costs
  • The relationship between product life cycles and standard costs

• Standard Costs and Budgeted Costs

• Conclusions

• References

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The following sections are included:

• Introduction

• Management-by-Objectives Linked to Management Accounting System

• Establishing the Corporate Target and Divisional Target

• Target Decomposition and Topics Registration
  • Target assignment
  • Method of target assignment
  • Topics registration

• Methods of Investigating the Topics for Improvement: Inventorization of Operations and VV Analysis
  • Inventorying the operations
    • Preparation of the “Operations Items List”
    • Preparation of the “Operations Inventory Table” (Necessary-Time Matrix)
  • Determination of the topics for improvement
    • VV analysis (Value and Volume Analysis)
    • Satisfaction deployment
    • Comparison with the proper number of staff in each department

• Estimation of the Correct Number of Employees and Evaluation of Actual Workforce
  • The corporate-wide (or departmental) proper number of administrative employees (CNE)
  • The departmental proper number of employee (DNE)
  • The estimation of the proper number of employees in each factory's administrative department (ENEF)

• Performance Evaluation in the Management-by-Objectives system

• Career Development Program

• Conclusion

• Acknowledgments

• References

The following sections are included:

• The Outline of ZPM

• Filing and Office Renewal Activities: Phase I
  • Three steps in Phase I
  • The results of activities

• Reforming Indirect Works: Phase II
  • Two steps in Phase II
  • The characteristics of Create-30
  • An overview of Create-30
  • Departmental strategic planning conference
  • Departmental improvement conference
  • The results of these activities
  • Create-30 collection and actual performance monthly reports
  • Investigating the possibility of achieving goals
  • Managing input and output of persons
  • Some future problems

• Conclusion

• References

The following sections are included:

• Application of ABM to Operational Restructuring
  • The relationship between business process innovation and ABM
  • The application of ABM to an operational restructuring project
  • Overviews of fundamental ABM analysis
    • Breakdown of operations into activities and definition of activities
    • Calculation of activity cost
    • Activity attribute analysis
    • Cost driver analysis
    • Cost Segment analysis

• Case of Business Process Innovation by Application of ABM
  • Background of client corporation and project
  • Organisation of the project
  • ABM research and analysis
  • Definition of solutions and analysis of effect-vs.-cost based on ABM analysis
    • Establishment of ordering centre
    • Conversion to “regular” items
  • Implementation of solution plans
    • Adequate set-up of organisational foundation to promote resolutions
    • Empowerment across corporations enable plans to proceed
    • Sharing of plan directions and motivation of employees
    • Cooperation across divisions
    • Reviews of implementation plans
  • ABM development at solution implementation stage

• Features of ABM Concept and Remarks about ABM Research
  • Identification of issue domains and presentation of solution directions
  • Balance between multi-dimensional analysis and analysis workload
  • Prevalence of motivation and innovation at worksite and continuous advancement

The following sections are included:

• The Pre-production Process in an Industrial Machinery Manufacturing Company

• The Activity for Reduction of Indirect Costs and BPR

• The Method of Enforcing “Cost Reduction Activity by IT”
  • A director of the “cost reduction activity”
  • Project teams
  • Setting the objectives of the “cost reduction activity by IT”
  • Analysis of the enterprise function
  • The application of information technology

• Results of the Case Study and Discussions
  • Baseline assessment of the pre-production process
  • Analysing the flow of the business process
  • Examinations and enforcement of the plans to reform the business process

• References

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The following sections are included:

• Introduction

• Overview of the Company

• The Structure of the ABC System

• Activity-Based Cost Analysis for Strategic Costs

• Implications for Controlling Marketing Strategy

• References

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The following sections are included:

• Introduction

• Japanese Cost Management Techniques—Target Costing and Kaizen Costing

• Cost Reduction Targets and Operating Pressure
  • Cost reduction as a target
  • Operating pressure
  • Management by Policy (Hoshin) as a management system for the realisation of cost reduction targets
  • MBP and Management by Objectives (MBO)

• Japanese Performance Evaluation—Process Evaluation

• The Administration Structure of Japanese Corporate Society
  • Cost reduction targets and improvement activities
  • The structure of Japanese corporate society

• Conclusion

• References

The following sections are included:

• Introduction

• Factors Concerning Customers and Employees for Competitive Advantage

• TP Management to Aim at the Balanced Attainment of Goals
  • An example of the simultaneous attainment of CS and ES
  • Another example of the simultaneous attainment of CS and ES

• Concluding Remarks

• References

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The following sections are included:

• Introduction

• Conventional Theory on the Controllable Profit and the Profit after Allocating Corporate Costs

• Performance Evaluation Measures under Increased Division Manager Authority: A Proposal

• Hypotheses
  • The effect of the degree of decentralization on the investment decision-making authority of the division manager as well as on the ratio of corporate costs
  • The effect of the investment decision-making authority of the divisional manager as well as the ratio of corporate costs on the profit measure used to evaluate the performance of divisional manager
  • The effect of the profit measure used to evaluate the performance of the divisional manager and the ratio of corporate costs on the company performance

• Verification of Hypotheses
  • Verification of Hypothesis 1
  • Verification of Hypothesis 2
  • Verification of Hypothesis 3
  • Verification of Hypothesis 4
  • Verification of Hypothesis 5
  • Verification of Hypothesis 6
  • Verification of Hypothesis 7

• Conclusion
  • Appendix
  • References

The following sections are included:

• Theoretical Framework and Hypotheses
  • Communication and coordination
  • Planning
  • Performance evaluation

• Research Method
  • Population and sample
  • Survey instruments

• Results and Discussions

• Conclusions

• Appendix

• References

The following sections are included:

• Index