The Mediating Effect of Kaizen Event between Production Management in Japanese Style and Cost Reduction in Lat Krabang Industrial Estate

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Boonyada Nasomboon

Abstract

This research is purposed to investigate and develop the causal structural relationship model of factors influencing Cost Reduction by analyze and compare direct and indirect effects of factors influencing Cost Reduction, consisting of 3 latent variables which are exogenous latent variable which is Production Management in Japanese Style, the endogenous latent variable is Cost Reduction, and Kaizen Event is mediator variable with the total of 14 observed variables. This research was conducted using a questionnaire as an instrument to collect data from Lat Krabang Industrial Estate 292 samples. This process was completed using the principles of structural equation modelling (SEM) which required confirmatory factor analysis on the measurement model and path analysis on the structural model.


The research result showed that the production management in Japanese style factors, which had direct influence on the cost reduction about 0.90 percent. And result showed that the kaizen factors, which had direct influence on the cost reduction about 0.63 percent. And result also showed that the production management in Japanese style factors had indirect influence on the cost reduction by passing though the mediator variable kaizen event about .81 percent.


In addition, the results of the model of the mediation variables as kaizen event factor between Japanese production management and cost reduction foundก that the model is very consistent with the empirical data.

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