A framework for assessing the cost effectiveness of lean tools Online publication date: Wed, 22-Oct-2014
by Imad Alsyouf, Raid Al-Aomar, Heba Al-Hamed, Xiaojin Qiu
European J. of Industrial Engineering (EJIE), Vol. 5, No. 2, 2011
Abstract: In this paper, a framework for assessing the cost effectiveness of lean tools is developed. The framework consists of eight phases within the plan-do-check-act (PDCA) problem solving and continuous improvement cycle. The framework was verified using a case study of a sawmill process at a wood manufacturer in Sweden. The framework enabled decision-makers to holistically assess the company's performance with respect to customer requirements, identify key process problems, and then select a cost effective lean improvement tool. The originality of the proposed framework was evident in addressing three key issues related to lean manufacturing: proposing lean techniques based on quality function deployment (QFD), developing a process lean profile using value stream mapping (VSM) and balanced scorecard (BSC), and assessing the cost effectiveness of lean tools using life cycle cost analysis (LCCA) and multiple criteria decision-making (MCDM). [Submitted 02 March 2009; Revised 27 October 2009; Revised 21 January 2010; Accepted 28 March 2010]
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