Value Stream Costing
Information and material "flow" through a process or "Value
Stream" to meet the needs and requirements of customers. The processing cost
is determined by the number and the extent of the activities to move the information
and materials from the beginning of the value stream to the end. Not all of these
activities are necessary or "Value Added" activities. Value stream costing
is a method to identify the steps of a process, the costs of each step and
provides information to determine which steps (activities) are value added and
which are waste. Better decision can be made concerning improvement efforts
focused on eliminating or reducing the waste activities based on cost information.
This tool is useful both in the manufacturing and administrative areas.
Value Stream Costing will provide:
- Make better decisions
- Identify wastes
- Learn Value Stream methodology
- Support the right incentives
Additional details on our Value Stream Costing
Click on the chart below for an enlarged view.
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