Implementation of Lean Production and Target Costing: A Systematic Literature Review of Cost Reduction Strategies
DOI:
https://doi.org/10.54259/akua.v5i2.7436Keywords:
Lean Production, Target Costing, Cost Reduction, Systematic Literature Review, Operational EfficiencyAbstract
Escalating global competition has driven manufacturing companies to seek more structured and measurable approaches to cost management. This study synthesizes contemporary literature examining the integrated application of lean production and target costing as complementary cost reduction frameworks. Employing a Systematic Literature Review (SLR) approach guided by the PRISMA protocol, data were drawn from Scopus, Web of Science, Google Scholar, and ScienceDirect, covering publications from 2021 to 2025. Of 309 articles initially retrieved, 10 studies satisfied all inclusion criteria and underwent thematic synthesis analysis. The findings demonstrate that combining lean production with target costing mechanisms yields measurable reductions in operational expenditure across multiple industry sectors, including iron and steel manufacturing, food processing, and supply chain management. Key determinants of successful implementation encompass adaptive organizational culture, alignment of cost accounting systems with lean principles, active employee participation, and robust information technology infrastructure. An emerging trajectory in the literature highlights the incorporation of digital innovations — particularly the Internet of Things (IoT) and machine learning algorithms — as accelerators for maximizing the joint effectiveness of both methodologies. Three empirically testable hypotheses are advanced, accompanied by an integrated conceptual framework designed to guide both scholarly inquiry and industrial practice.
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Copyright (c) 2026 Sindy Elisia Husna, Zakia Ramadhani, Yusnaini Yusnaini
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