Research On Cost Management In Lean Production

As a manufactory company, CHS is facing a big change from a large-lot production to multi-varieties and small-batch production. Lean Production, from Toyota Automobile, looked as a new thinking and management method was introduced into CHS in2012, while the old cost management system couldn’t follow the changes. So, a more accurate cost management should take the place of the old one.Cost management theories and lean production are roughly reviewed in the introduction of this article. In chapter two, by explaining and comparing the large-lot production, lean production, their cost theories, the differences between them are clearly understood. After that, the framework of a lean cost management system and its roadmap are given in the same chapter. The reasons and changelings to the old cost system are listed in chapter three. Then, the important part of this article chapter four, describing the changes in CHS, how to combine ERP and Activities-based cost (ABC) management system and assessment of cost in Lean production in CHS.By studying on the implementation of Lean production and ABC in CHS, wish companies which are starting Lean Production or planned to introduce Lean Production could get some ideas or method of how to use ABC in its Lean production environment from this article.