Functional-Cost Analysis as a Tool of Lean-Production

This present study is devoted to description of the importance of functional-cost analysis (FSA) method when developing a strategy for lean production. The research will be mainly focused on the functional-cost analysis. The main purpose of this investigation is to explore the possibility of using FSA as part of the implementation of the company lean concept n in order to optimize cost and improve the production process as a whole. The goal of this research is going to be achieved via applying Case Study method and, as a result, making the clear link between FSA and Lean Manufacturing. GAZ Group of Russia, being one of the largest car manufacturers in the country, claims to have adopted lean concept, however, there is no evidence that FSA system is used, and therefore there are areas that need improvement. Besides, "GAZ Group" is the assembly plant and cooperates with a large number of suppliers, who are covered by the GAZ production system, applying the basic principles and implementing them in the production process. For this reason, FSA was conducted at the company AGAT, one of the main suppliers of GAZ company. The research study might be significant for companies with a large amount of indirect costs related to a diversity of activities. Besides, the results of this study are anticipated to discover to the correlation between FSA and Lean Manufacturing and provide opportunities for further research.