Title: Cost value stream mapping as a lean assessment tool in a small-scale industry

Authors: B. Rajesh Menon; P.R. Shalij; K.R. Kiron; J. Sreejith; P. Sajeesh

Addresses: Department of Mechanical Engineering, NSS College of Engineering, Palakkad, Kerala, India ' Department of Production Engineering, Government Engineering College, Thrissur, Kerala, India ' Department of Mechanical Engineering, NSS College of Engineering, Palakkad, Kerala, India ' Department of Mechanical Engineering, Amrita School of Engineering, Coimbatore, Amrita Vishwa Vidyapeetam, India ' Department of Mechanical Engineering, NSS College of Engineering, Palakkad, Kerala, India

Abstract: Value stream mapping (VSM) is a lean tool which addresses the non-value added activities in time domain. But, it fails to address it in a cost domain. In this work, a new tool called cost value stream map (CVSM) is proposed, which addresses the problems encountered in conventional VSM and cost-time profile (CTP) and maintaining the advantages of both. The determination of work in process inventory and non-value added costs incurred by using CVSM are demonstrated by presenting a case study. An SME in Kerala, India is selected for this. Lean techniques applied on the various non-value added activities in the order of their cost investments 27% reduction in lead time, 27%-32% reduction in WIP inventory and 40%-42% reduction in cost investment while manufacturing the product. The reductions when accounted annually there is a saving of INR.2,17,728 in the value added cost.

Keywords: value stream mapping; VSM; cost investment; lean tools; cost-time profile; CTP; adjustable prop.

DOI: 10.1504/IJPQM.2020.107274

International Journal of Productivity and Quality Management, 2020 Vol.30 No.1, pp.72 - 91

Received: 03 Nov 2018
Accepted: 10 Jan 2019
Published online: 11 May 2020 *

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