Cost value stream mapping as a lean assessment tool in a small scale industry

Value stream mapping (VSM) is a lean tool which addresses the non-value added activities in time domain. But, it fails to address it in a cost domain. In this work, a new tool called cost value stream map (CVSM) is proposed, which addresses the problems encountered in conventional VSM and cost-time profile (CTP) and maintaining the advantages of both. The determination of work in process inventory and non-value added costs incurred by using CVSM are demonstrated by presenting a case study. An SME in Kerala, India is selected for this. Lean techniques applied on the various non-value added activities in the order of their cost investments 27% reduction in lead time, 27%-32% reduction in WIP inventory and 40%-42% reduction in cost investment while manufacturing the product. The reductions when accounted annually there is a saving of INR.2,17,728 in the value added cost.