TargetStream
ValueStream
Actions required tobring a product through the production stream, and, the designstream.
The designflow – from launch to concept
Theproduction flow – from raw material to thecustomer
GeneralAdministrative Costs ——————–> Determining consumerneeds ———-> Service support
Order—–> Manufacturing Labour & Load——–> Distribution & Installation —-> Duties &Tariffs
Engineering
Procurement& Transportation ————-> Materials
(ForPharmaceutical industry – Lower Cost of Goods Sold)
Target costing isfor direct comparison to Cost of Goods Solved. Full stream targetcosting takes into account most likely, and, worst case supplychain scenarios.
ValueStream Mapping
Lean manufacturing is associated with production flow
Customer demand——-> raw material —————–> Product &waste
Waste
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