A Study on The Place and Importance of Value Stream Costing Method in Lean Manufacturing System

Abstract

Lean manufacturing system, which focuses on the philosophy of creating value for customers, aims to do most with minimal resources. The success of lean production requires that lean is perceived as a management system and lean thinking is dominated in all units and systems of business. Lean accounting, a product of innovation requiriment in the area of accounting, serves to financial reporting, cost management, performance management and supports management processes. The tool that lean applied for cost management is value stream costing method in lean manufacturing environment. The value stream costing method reports by calculating actual costs based on value streams, shows a way for continuous improvement and creating more value for customers by allowing to determine areas that need to be developed in value streams to reduce waste. Value stream costing method that is compatible with the lean manufacturing principles supports lean manufacturing. The aim of the study is to reveal the importance and necessity of value stream costing method in a lean production system by focusing on lean manufacturing, lean accounting and value stream costing.