The effects of lean transformation on performance measurement and capacity management case Valmet

The study focuses on reviewing the effects of lean transformation on the case organization’s performance measurement and capacity management. The objective of the study was to identify issues in management accounting processes from the standpoint of lean production and to develop new capacity and pe...

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Main Author: Heino, Henri
Other Authors: Kauppakorkeakoulu, School of Business and Economics, Taloustieteet, Business and Economics, University of Jyväskylä, Jyväskylän yliopisto
Format: Master's thesis
Language:eng
Published: 2016
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/48856
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author Heino, Henri
author2 Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto
author_facet Heino, Henri Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto Heino, Henri Kauppakorkeakoulu School of Business and Economics Taloustieteet Business and Economics University of Jyväskylä Jyväskylän yliopisto
author_sort Heino, Henri
datasource_str_mv jyx
description The study focuses on reviewing the effects of lean transformation on the case organization’s performance measurement and capacity management. The objective of the study was to identify issues in management accounting processes from the standpoint of lean production and to develop new capacity and performance measures that support lean production in the case organization. As a result of the study absorption-based capacity management was identified as a key barrier for lean operations and continuous improvement at Valmet’s Paper business line. As a solution the study proposes implementing new capacity related performance measures focusing on the bottleneck processes and production machines. The proposed process level measure, operational equipment effectiveness (OEE), consists of three elements: availability, performance efficiency, and quality. On a value stream level the study proposes implementing non-financial capacity management based on bottlenecks. However, prior to implementation an outspoken definition of the case organization’s value streams is required. Together the implementation of the proposed process and value stream capacity measures, and the shift in the way of understanding capacity utilization can be viewed as a pathway guiding Valmet away from absorption-based capacity management. For the purpose of this study a roll production workshop was used as a research subject representing a production value stream. However, in reality a value stream includes several functions such as procurement, engineering and assembly that also need to be included in the measurement of the value stream. As a part of the study also the financial aspect of measuring the value stream was examined. However, in the end the financial aspect was left out of the primary focus of the study. Yet this study provides the basis for further research on implementing value stream costing in the case organization as the lean transformation moves forward.
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spellingShingle Heino, Henri The effects of lean transformation on performance measurement and capacity management : case Valmet Valmet (yhtiö) Laskentatoimi Accounting 20421 lean-ajattelu ohjausjärjestelmät
title The effects of lean transformation on performance measurement and capacity management : case Valmet
title_full The effects of lean transformation on performance measurement and capacity management : case Valmet
title_fullStr The effects of lean transformation on performance measurement and capacity management : case Valmet The effects of lean transformation on performance measurement and capacity management : case Valmet
title_full_unstemmed The effects of lean transformation on performance measurement and capacity management : case Valmet The effects of lean transformation on performance measurement and capacity management : case Valmet
title_short The effects of lean transformation on performance measurement and capacity management
title_sort effects of lean transformation on performance measurement and capacity management case valmet
title_sub case Valmet
title_txtP The effects of lean transformation on performance measurement and capacity management : case Valmet
topic Valmet (yhtiö) Laskentatoimi Accounting 20421 lean-ajattelu ohjausjärjestelmät
topic_facet 20421 Accounting Laskentatoimi Valmet (yhtiö) lean-ajattelu ohjausjärjestelmät
url https://jyx.jyu.fi/handle/123456789/48856 http://www.urn.fi/URN:NBN:fi:jyu-201602191632
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