KAIZEN AS A SYSTEM FOR STRATEGIC COST MANAGEMENT IN THE REALIZATION OF COMPETITIVE ADVANTAGES

Abstract

Managing a company in contemporary, dynamic business
conditions must be strategically oriented. The competition forces
companies to constantly reduce all types of costs incurred in preproduction and production processes, with the obligation to maintain
the quality of manufactured products at a satisfactory level. Such
requirements can be achieved only by adequate strategic planning of
all production processes, and by strategic management of costs. In
this context, Kaizen as a cost management system can be
characterized as an ideal strategic tool and a source of
competitiveness, since by its application organization can plan its
production activities in detail, organize them in a way that fully
complies with the principles of efficiency and effectiveness, and
minimize waste and unwanted losses of available resources. The aim
of the research is to consider the Kaizen concept as a system for
managing (reducing) costs, and as a source of competitive advantage
of a particular organization. The descriptive and comparative method,
the technique of analysis and synthesis, as well as analysis of the content of relevant literature of reference domestic and foreign
authors, were used for the research purposes. The result of the
research is the confirmed assumption that the implementation of the
Kaizen system in the company provides an atmosphere of constant
improvement that leads to the reduction of production costs and
increased market competitiveness.