VALUE STREAM COSTING AS A MANAGEMENT STRATEGY FOR OPERATIONAL IMPROVEMENT

摘要

Managing and costing the pants production line as a value stream as opposed to a discrete production function with various support functions had favorable consequences for the company as reflected in Exhibit 4. The value stream manager believes there was some organizational resistance to the elimination of functional lines within the value stream, thereby restricting the complete implementation. A stronger sense of ownership in the value stream was exhibited by the value stream manager after the organizational change.rnThe company will further leverage the VSC benefits by refining the organizational changes and the costing concepts. The company plans to implement VSC throughout all production processes as a result of the positive results obtained from the pilot project.