Cost Reduction in Work Processes through LEAN

Abstract

The purpose of this study was to evaluate cost reduction in work processes using LEAN. The sample of 826 subjects was the paper work by the grantees in fiscal year 2014. The  processes were improved in order to reduce expenses by using LEAN. The statistical methods employed were descriptive statistics and Independent T-test. The results showed that using LEAN can reduce  costs in the processes of approving funds by 104,896.5 baht or 99.55 per cent, submitting a final report by 47,518.50 baht or 94.67 per cent, disbursement of the second installment by 6,280.50 baht or 64.86 per cent, disbursement of the first installment by 592.50 baht or 55.56 per cent, and application for funding by 1,579.50 baht or 15.21 per cent. Overall costs were reduced by 160,867.50 baht or 91.04 per cent. The cost per head was reduced from
2,236.63 baht to 200.34 baht or from 7.46 per cent to 0.67 per cent of the funding. The significant difference between before and after the implementation of LEAN was at the .05 level. It is recommended that the application of the LEAN principle should be used to reduce costs in other jobs.