摘要：This paper attempts to integrate Value Stream Map (VSM) with the cost aspects. A value stream map provides a blueprint for implementing lean manufacturing concepts by illustrating information and materials flow in a value stream. The objective of the present work is to integrate the various cost aspects. The idea is to introduce a cost line, which enhances the clarity in decision making. The redesigned map proves to be effective in highlighting the improvement areas, in terms of quantitative data. TAKT time calculation is carried out to set the pace of production. Target cost is set as a bench mark for product cost. The results of the study indicates that implementing VSM led to reduction in the following areas: processing lead time by 34%, processing cycle time was reduced by 35%, Inventory level by 66% and product cost from Rs 137 to Rs 125. It was found that adopting VSM in a small scale industry can make significant improvements.
关键词：Lean manufacturing;Value stream map;Activity based costing;Target costing.
