Define Kaizen Cost Reduction Plan

Explanation

Use this function to define your Kaizen Cost Reduction Plan.

Prerequisites

Definition of Kaizen Cost Reduction Type must have been done in Basic Data for Costing.

System Effects

This activity will create a Kaizen Cost Plan that connects to a Part Cost Object.

Window

Part Cost

Related Window Descriptions

Part Cost/Kaizen Cost

Procedure

  1. Open the Part Cost window and click the Kaizen Cost tab.
  2. Create a new record and the Line Item Number will be incremented.
  3. Enter an activity description in the Activity Description field.
  4. Enter a reduction type in the Reduction Type field. Use List of Values to select among available reduction types.
  5. Select a kaizen status in the Kaizen Status field. Your default kaizen status is Initiated and is given as a default value, but can be changed. Use List of Values to select among available status values; Preliminary, Final, Verified and Canceled.
  6. Enter a planned due date in the Planned Due Date field.
  7. Enter a verified date in the Verified Date field.
  8. Enter cost reduction potential in the Cost Reduction Potential field.
  9. Enter verified reduction in the Verified Reduction field.
  10. Enter a depreciable investment in the Depreciable Investment field.
  11. Enter a sunk investment in the Sunk Investment field.
  12. In the ROI Method field, select a Return on Investment Method. Your default ROI Method is Pay Back and is given as a default value, but can be changed. Click List to select among available ROI Methods; Net Present Value, Modified Internal Rate of Return.
  13. Right-click to calculate ROI.
  14. In the Last Activity Date field, the last activity date will be set when saving the new Line Items.
  15. In the Notes field, you can enter a note to remember specific issues regarding each activity.
  16. Repeat step 1 to 14 until all activities that regard Kaizen Cost Reduction Plan are registered.
  17. Save the changes.