Activity Based Costing as a Tool for Lean Production

The purpose of the final qualifying work is to study the possibilities of applying Activity Based Costing as a tool for Lean production. Objectives of the work can be formulated as: 1. To study and examine in detail the existing mechanism of Activity Based Costing; 2. Consider the historical aspect of the Lean production; 3. Study of the impact of Activity Based Costing on Lean production; 4. To make a literature review of Activity Based Costing and Lean production; 5. Practical application of Activity Based Costing at the enterprise of JSC "Gorky Automobile Plant"; 6. Analyze the economic effectiveness of the implemented changes. Practical significance lies in the implementation of the research results in relation to the production activities of the company. The scientific novelty lies in the study of the possibilities of application of Activity Based Costing and Lean production, as well as in the disclosure of problems in the process of manufacturing the "F6910160 Engine Support Bracket". The first chapter is devoted to the theoretical aspect of Lean production and Activity Based Costing. Also, the possibilities of using Activity Based Costing as a tool for Lean production are considered. The second chapter shows the results of the applying Activity Based Costing at the enterprise of JSC "Gorky Automobile Plant". In the course of the study, the losses in the work section of the "F6910160 Engine Support Bracket" were identified and reduced. The result shows that the application proved to be effective and economically profitable for the enterprise. Also, an assessment of the implemented changes was carried out using Activity Based Costing.