Scientific Bulletin of the Odessa National Economic University 2018, 11, 117-136
Open Access Article
Kuznetsova Inna
Doctore of Еconomic Sciences, Professor, Odessa National Economic University. E-mail:inna.stream27@gmail.com
Gorbatiuk Valentina
master`s student, Odessa National Economic University. E-mail:inna.stream27@gmail.com
Kuznetsova I., Gorbatiuk V., (2018) Formation of cost leadership strategy based on lean production. Ed.: М.D. Baldzhy (ed.-in-ch.) and others [Systema pensiinoho zabezpechennia Ukrainy ta yevrointehratsiini protsesy; za red.: М. D. Baldzhy (gol. red.)], Scientific Bulletin of the Odessa National Economic University (ISSN 2313-4569), Odessa National Economics University, Odessa, No. 11(263), pp. 117-136.
The existing definitions of lean production were systematized by a number of features: as a set of relationships; as a way to minimize activities that do not add value; how to reduce costs; as an efficient use of resources. Comparable characteristics of the principles of efficient production organization and lean production concepts were carried out. It was revealed that these two concepts have a number of common features that predetermine the rules of rational organization of production systems: the principle of specialization, standardization, parallelism, rhythmicity, directness, flexibility. Significant differences regarding concepts of the proportionality, continuity, marginal deviations and increased efficiency of operations were generalized. The expenses occurring in all kinds of production activities were grouped in nine kinds: intellectual, overproduction, loss-making stocks, defects, over-processing of labor objects, over-transportation, simple, resourceful. Such a grouping provides an opportunity to eliminate or reduce losses in all areas of the enterprise. It was proved that the bases of lean production lie in the elimination of reasons that cause losses. Personal definition of “lean production” was offered, which is based on two rules: eliminating losses during production and increasing its value for consumers. Sequence of process management based on PDCA cycle was substantiated. The offered structure enables to apply management operations till final elimination of losses on all links in the chain of business processes. Conceptual model of cost leadership strategy based on lean production was worked out. The offered conceptual model is distinguished by possibility to cover two tasks: to substantiate concrete position of an enterprise in the market and to eliminate losses in its business processes.
competitive strategies, lean production, losses, PDCA cycle, principles of production system organization, management process, resource efficiency.
JEL classification: L190
UD classification: [005.52:330.133.1]:338.2