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), 2017. Published by Science Publishing Group |
Cost Management, Lean Manufacturing, Schedule Performance, Value Added Activities, Poor Quality
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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
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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 -
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