Journal
EUROPEAN JOURNAL OF INDUSTRIAL ENGINEERING
Volume 5, Issue 2, Pages 170-197Publisher
INDERSCIENCE ENTERPRISES LTD
DOI: 10.1504/EJIE.2011.039871
Keywords
lean manufacturing; lean tools; value stream mapping; cost effectiveness; life cycle cost analysis; LCCA; balanced scorecard; BSC; quality function deployment; QFD; multiple criteria decision making; MCDM; sawmill; industrial engineering
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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).
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