Title: Integrating the Last Order Costing model into a lean framework

Authors: A. Davies, E. John, A.J. Thomas

Addresses: Cardiff School of Engineering, Queens Buildings, Cardiff University, CF24 3EH, UK. ' Cardiff School of Engineering, Queens Buildings, Cardiff University, CF24 3EH, UK. ' Newport Business School, University of Wales Newport, Gwent NP20 5DA, UK

Abstract: In today|s business environment where the selling price of a product is often dictated by the competitive forces which exist in the marketplace, a well structured |cost/waste minimisation programme| should enable a company to maintain its long term competitive advantage. In this paper, a |Last order Costing| methodology has been developed which addresses the identification and minimisation of total production costs within a company. This paper provides a detailed explanation of the methodology and an examination of each cost element within a subject company. It further highlights where more detailed investigation may result in additional financial reductions. [Received 17 August 2009; Revised 7 April 2010; Accepted 22 October 2010]

Keywords: lean order processing; system design; cost reduction; last order costing; total production costs; activity-based costing; ABC; supply chain costs; supply chain management; SCM; small firms; manufacturing industry.

DOI: 10.1504/IJMR.2011.040009

International Journal of Manufacturing Research, 2011 Vol.6 No.2, pp.160 - 174

Available online: 11 May 2011 *

Full-text access for editors Access for subscribers Purchase this article Comment on this article