ABM, Kaizen Costing

Required:

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

Setup Time Standard

First quarter

hour$($s$)$

Second quarter

hour$($s$)$

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

$

per setup

a$.$ Setting the kaizen setup standard at the beginning of each quarter.

b$.$ Locking in or establishing a new standard for the maintenance subcycle.

c$.$ Calculating the non$-$value$-$added cost that was eliminated at the end of two quarters.

d$.$ In the maintenance subcycle, finding out why a new setup time deteriorates so that corrective action can be taken.