A SUGGESTED FRAMEWORK FOR REDUCING COST AND LEVERAGING BETTER ENVIRONMENTAL PERFORMANCE THROUGH LEAN PRODUCTION: CASE STUDY

With the development of production mechanisms and the use of advanced management methods, the first goal of the study  is to reduce costs and use of modern technology in production and achieve sustainable development; and this was the motive of the researcher to do this reseach. Companies began to implement the total quality concept in order to survive and achieve competitive advantage in the global market. It is a system for managing and developing production and operations, establishing a network of suppliers and developing relations with customers so that the production process is done with minimal effort, less space, less time and with the least number of defective units to satisfy their customers’ needs as compared to mass production system.
The researchers studied the stages of development of the production systems in the business environment, where as the manufacturing systems developed and appear the flexible manufacturing system instead of the mass production system then appear JIT system. The researchers then explained the beginnings of the lean production system, its concept, principles and tools. The researchers introduced the value stream cost (VSC), the process of the value stream, and how to apply the value steam cost and types of those costs are also explained by sustainable development. The researchers applied the value steam cost to a company (a case study)
Finally, the study concluded that while using the lean production, the VSC system is an alternative and suitable for the traditional cost system. The aime of lean production is to remove the waste which helps in satisfy their customers’ needs, thus enhancing the competitive advantages of the establishment and achieve sustainable development. The value steam cost which use when following lean production, it helps to reduce costs by eliminating the costs that do not pertain to the value stream.
The researcher recommended that companies using lean production should use a value stream cost that is an appropriate system for lean production for ease and accuracy.