and in next year new lower kaizen cost reduction rates are set and cost reduction efforts are continued in the organization. The kaizen cost reduction goals are met through the removal of non value added activities costs, elimination of wastes and improvement in time management. The improvement suggestions given by employees are also taken sincerely by management, who implement these suggestions or ideas. Kaizen costing provides continually more competent and cost-effective production process (Hilton et al., 2006).