This paper will help to identify the interrelationship factor of cost management in lean production system. Standard overhead costs are sum up of expected direct labor & machine hours. In-fact major problem of cost is not direct labor or material, but the cost allocation. Before direct labor was a huge expense for the organizations, but now usually all works is done by robots and electronics instruments, so direct labor cost is almost less than 8% of the total costs. But in opposite side overhead cost is higher than before because extensive usage of machineries. As shown in Table 1 and 2, any changes in a product mix can mislead and extra addition any other product costs, if direct labor saving took for product B, so product A will bear extra cost of overhead because of changes in product B, in-fact no changes in product A process. The most advanced level in the lean production is “Four Wall” Transfer to finished products and vendor receipts. The control requirements of four walls are: Continuous product flow, short lead time and few scrap.
| Published in | Journal of Investment and Management (Volume 6, Issue 4) |
| DOI | 10.11648/j.jim.20170604.11 |
| Page(s) | 87-91 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Cost Management, Lean Manufacturing, Schedule Performance, Value Added Activities, Poor Quality
| [1] | Ledbetter, M. E. and SNYDER, C. A. (1993) Work-In-Process Inventory Control for Repetitive Manufacturing In An MRP Environment: A Case Study. |
| [2] | Khan, S. A. R; Dong, Q; Zhang, Y. (2016) Usage of RFID technology in supply chain: benefits and challenges, International Journal of Applied Engineering Research, Vol. 11, No. 5, pp. 3720-3727. |
| [3] | Khan, S. A. R; Dong, Q; Wei, S; Zaman, K; Zhang, Y. (2016) Environmental logistics performance indicators affecting per capita income and sectoral growth: evidence from a panel of selected global ranked logistics countries, Environmental Sciences and Pollution Research, DOI 10.1007/s11356-016-7916-2. |
| [4] | Fawcett, S. E. (1995) Using Strategic Assessment To Increase The Value-Added Capabilities of Manufacturing and Logistics. |
| [5] | Jostes, T. and Helms, M. M. (1995) The Use Of Buffer Inventory As An Asset Management Tool In A Quick-Response Environment. |
| [6] | Spener, M. S; Daugherty, P. J. and Rogers, D. S. (1994) Towards A Deeper Understanding Of JIT: A Comparison Between APCIS And Logistics Managers. |
| [7] | Lee, J; Ristroph, J. H; Zhu, Zhiwei; Ruangdet, M. (1993) Performance Evaluation of Lot-Sizing Methods with Multiple Quantity Discounts In A Rolling Horizon Environment. |
| [8] | Chen, S; Chen, Rongqiu. (1997) Manufacturer- Supplier Relationship In A JIT Environment. |
| [9] | Chorafas, D. N. (2001) Integrating Enterprise Resource Planning, Customer Relationship Manager, Supply Chain Management And Smart Materials. |
| [10] | Ratliff, H. D. (2013) 10 Rules of Supply Chain Management And Logistics Optimization. |
| [11] | Alternburg, K; Griscom, D; Hart, J; Smith, F. (1999) Just-In-Time Logistics Support For The Automobile Industry. |
| [12] | Quayle, M. (2006) Purchasing And Supply Chain Management: Strategies And Realities. |
| [13] | Mclvor, R. (2002) Integrated Manufacturing Systems The International Journal of Manufacturing Technology Management Vol. 13 Number 8, 2002. |
| [14] | Feld, W. M. (2001) Lean Manufacturing Tools, Techniques, And How To Use Them, ISBN 1-57444-297-X. |
| [15] | Inman, R. A. (1999) Environmental Management: New Challenges For Production And Inventory Managers. |
| [16] | Steele, A. L. (2001) Cost Drivers And Other Management Issues In The JIT Supply Chain Environment. |
| [17] | Hubbary, D. T; Taylor, S. G; Bolander, S. F. (1992) Process Flow Scheduling In A High-Volume Repetitive Manufacturing Environment. |
| [18] | Khan, S. A. R; Dong, Q; Zhang, Y. (2015) Classification of the Important & Critical Factors in Enterprise Resource Planning, Life Science Journal, Vol. 12, No. 12. |
APA Style
S. A. Rehman Khan, Yu Zhang, Syed Shahid. (2017). Today’s World: Lean Manufacturing Environments and Cost Management. Journal of Investment and Management, 6(4), 87-91. https://doi.org/10.11648/j.jim.20170604.11
ACS Style
S. A. Rehman Khan; Yu Zhang; Syed Shahid. Today’s World: Lean Manufacturing Environments and Cost Management. J. Invest. Manag. 2017, 6(4), 87-91. doi: 10.11648/j.jim.20170604.11
AMA Style
S. A. Rehman Khan, Yu Zhang, Syed Shahid. Today’s World: Lean Manufacturing Environments and Cost Management. J Invest Manag. 2017;6(4):87-91. doi: 10.11648/j.jim.20170604.11
Share This Article
Twitter
Linked In
Facebook
Copy
Download@article{10.11648/j.jim.20170604.11,
author = {S. A. Rehman Khan and Yu Zhang and Syed Shahid},
title = {Today’s World: Lean Manufacturing Environments and Cost Management},
journal = {Journal of Investment and Management},
volume = {6},
number = {4},
pages = {87-91},
doi = {10.11648/j.jim.20170604.11},
url = {https://doi.org/10.11648/j.jim.20170604.11},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jim.20170604.11},
abstract = {This paper will help to identify the interrelationship factor of cost management in lean production system. Standard overhead costs are sum up of expected direct labor & machine hours. In-fact major problem of cost is not direct labor or material, but the cost allocation. Before direct labor was a huge expense for the organizations, but now usually all works is done by robots and electronics instruments, so direct labor cost is almost less than 8% of the total costs. But in opposite side overhead cost is higher than before because extensive usage of machineries. As shown in Table 1 and 2, any changes in a product mix can mislead and extra addition any other product costs, if direct labor saving took for product B, so product A will bear extra cost of overhead because of changes in product B, in-fact no changes in product A process. The most advanced level in the lean production is “Four Wall” Transfer to finished products and vendor receipts. The control requirements of four walls are: Continuous product flow, short lead time and few scrap.},
year = {2017}
}
TY - JOUR T1 - Today’s World: Lean Manufacturing Environments and Cost Management AU - S. A. Rehman Khan AU - Yu Zhang AU - Syed Shahid Y1 - 2017/10/23 PY - 2017 N1 - https://doi.org/10.11648/j.jim.20170604.11 DO - 10.11648/j.jim.20170604.11 T2 - Journal of Investment and Management JF - Journal of Investment and Management JO - Journal of Investment and Management SP - 87 EP - 91 PB - Science Publishing Group SN - 2328-7721 UR - https://doi.org/10.11648/j.jim.20170604.11 AB - This paper will help to identify the interrelationship factor of cost management in lean production system. Standard overhead costs are sum up of expected direct labor & machine hours. In-fact major problem of cost is not direct labor or material, but the cost allocation. Before direct labor was a huge expense for the organizations, but now usually all works is done by robots and electronics instruments, so direct labor cost is almost less than 8% of the total costs. But in opposite side overhead cost is higher than before because extensive usage of machineries. As shown in Table 1 and 2, any changes in a product mix can mislead and extra addition any other product costs, if direct labor saving took for product B, so product A will bear extra cost of overhead because of changes in product B, in-fact no changes in product A process. The most advanced level in the lean production is “Four Wall” Transfer to finished products and vendor receipts. The control requirements of four walls are: Continuous product flow, short lead time and few scrap. VL - 6 IS - 4 ER -
Information
Email: