This study explores the application of Kaizen costing—a continuous improvement management technique—in reducing lead time and enhancing customer satisfaction at ABC Company. Focused on minimizing time losses in sales order processing, the research follows the PDCA (Plan-Do-Check-Act) cycle to identify bottlenecks, analyze root causes, and implement solutions that streamline operations. Using a value-added analysis, the study differentiates between value-added and non-value-added activities, leading to the redesign of workflow processes. Post-implementation data shows a reduction of 14.93% in production lead time and 6.98% in sales order processing time. The findings demonstrate that Kaizen not only minimizes waste and time losses but also fosters a culture of employee involvement, standardization, and sustained improvement. The study underscores the significance of top management support and a process-oriented mindset to ensure long-term effectiveness. This case illustrates how Kaizen can drive efficiency and quality in manufacturing without significant capital investment, contributing to overall organizational competitiveness