APPLICATION OF KAIZEN COSTING AS A TOOL OF EFFICIENCY IN COST OF PRODUCTION AT PT. COCA COLA BOTTLING INDONESIA

WINY UTARI

Accounting Department Faculty of Economics

FACULTY OF ECONOMICS ANDALAS UNIVERSITY PADANG 2011

Kaizen 23

ABSTRACT

Kaizen Costing is concerned with reducing the costs of existing products and process. The objective of this research is to know how Kaizen Costing can be applied to reduce the increasing of rejected product in the production process that impact to cost of production and company profit. 

The types of this research are descriptive and qualitative research with case study at PT.Coca-Cola Bottling Indonesia-Central Sumatera, Indonesia. The data used in this research are primary and secondary data. The primary data gathered directly through structured interview and observation. While the secondary data is taken indirectly through procedure, document and monthly report of the rejected product .The data analysis is conducted by comparing the existing theory and structure interview about the definition of rejected product and criteria of rejected product, finding the problem of increasing the rejected product and solution to overcome of this problem, and comparing the traditional costing and Kaizen Costing  through the PDCA(Plan,Do,Check,Act) and SDCA(Standard,Do,Check,Act).

The result of the research shows that the company has doing an improvement about the rejected product but is not sustainable, so that the increasing of rejected product is occurred for each month in the production process. The company is implemented of Kaizen Costing begin from July 2010 to evaluate the decreasing of rejected product for the next month. Thus, the cost efficiency can be achieved from August 2010 until December 2010 by the company in implementing the Kaizen Costing method is Rp.86, 434,272.

Based on the results of the conclusion, the writer is provide the  suggestions to company to implemented of Kaizen Costing in order to overcome and continuous improvement about  the rejected product  in the production process. Moreover, the company can be achieving the new standard and the number of rejected product can be decrease closed to zero. 

Keywords: Kaizen Costing