Suetina T.A., Safina D.M.Published in:
Russian Journal of Entrepreneurship
– Volume 19, Number 10 (October 2018)

JEL classification: C02, C41, D24

Keywords: calculation algorithm, economic efficiency, investment, lean production, scale of implementation


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Abstract:

The thoughtful implementation of lean production tools in Russian companies often brings the desired positive effect, expressed in saving financial, human, temporary resources, energy and production space. However, the question remains at what scale of implementation it is possible to achieve a positive return on investment in lean production. The paper proposes an algorithm for calculating the economic efficiency of investments in lean manufacturing measures, based on an assessment of the scale of implementation of lean manufacturing tools in an enterprise. It is possible to use the developed algorithm at the stage of analysis of possibilities of application of measures of lean production in divisions of the enterprise and at the stage of preliminary assessment of efficiency of implementation of actions at the level of the enterprise as a whole. The proposed method will allow choosing the most cost-effective measures of lean production

Highlights:

• Industrial enterprises of the Republic of Tatarstan pay much attention to the organization of production with the use of lean production tools.
• The resulting effect of the introduction of lean production activities in the units is due to the saving of material resources, operating time of technological equipment and reducing the loss of operating time of production and industrial personnel.
• Difficulties in calculating the economic effect of the introduction of lean production activities are associated with the identification of profit growth of the enterprise as a result of the introduction.
• In order to assess the economic effect of the implementation of lean production measures, the threshold level of the scale of implementation of measures should be reached at the enterprise
• The size of exceeding the threshold value of the scale of implementation of measures at the enterprise determines the value of the economic effect at the enterprise level.
• The threshold value of the scale of implementation of lean production is determined by the expert based on the total number of lean production tools implemented in the structural units and their impact on the performance of units.
• To assess the impact of the scale of implementation of measures of lean production on the profit growth of the enterprise as a whole, the authors proposed a mathematical model.
• The algorithm developed based on the model allows to evaluate the effectiveness of investments in lean production activities.
• It is advisable to use the proposed method at the stage of planning investments of lean production to select the most cost-effective program of implementation of lean production.

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