A framework for assessing the cost effectiveness of lean tools

Imad Alsyouf, Raid Al-Aomar, Heba Al-Hamed and Xiaojin Qiu

European Journal of Industrial Engineering, 2011, vol. 5, issue 2, 170-197

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]

Keywords: lean manufacturing; lean tools; value stream mapping; cost effectiveness; life cycle cost analysis; LCCA; balanced scorecard; BSC; quality function deployment; QFD; multicriteria decision making; MCDM; sawmills; industrial engineering; wood manufacturing; Sweden; customer requirements. (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (2)

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