Lean Manufacturing
Lean Manufacturing capacities are new and they give you an alternate method for dealing with your assembling forms when contrasted with the customary discrete assembling models of BOM's and routes.
If you saw Lean in earlier implementations then don't be frightened by its new phrasing and builds that it uses to demonstrate the assembling forms. It shares some of the procedures that the conventional assembling models use, and is simpler and more straightforward to arrange.
Semi Finished Products: In practising lean manufacturing principles, we can integrate kanbans for products in inventory and semi-finished-products.
Products and material in work in process (WIP): Reduction in batch sizes for lean manufacturing practices can cause an increase of pulled items (or kanbans) in inventory transactions. The value of the pulled resources is automatically added to the WIP account related to the production order. Thus, when the products are posted to inventory, the WIP is deducted by the related standard cost.
Value streams and value stream mapping: In manufacturing, the term value stream mapping (VSM) has been an approved method for lean manufacturing. The tool can be modelled for process activities, movements and/or transfers. Also inherent is to use the value stream as a financial dimension.
Costing for lean manufacturing based on the production flow: Lean manufacturing makes cost independent of the BOM line items, which give users the ability to report consumption without reporting quantities by job. Thus, although lean manufacturing disrupts job costing system principles-due to the production order being unavailable, the production flow is what is relied on for cost accumulation. This concept is based on standard costs, and the periodic consolidation based on production flow recalculates actual cost allowing the user to determine variances (such as materials quantity variance, labor material variance, etc.).
Continuous improvement: Continuous improvement in production flows equips users with the ability to copy an existing production flow version and model future-state before validating for production. This is due to it being implemented in time-effective versions.