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Lean Principles and Accounting

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Zach Huston

on 6 April 2014

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Transcript of Lean Principles and Accounting

Lean Principles and Accounting

What is Lean?
Implementing Lean
The Phases
Lean Accounting Practice
• A lean manufacturing process without correct accounting changes to back it up is a half baked idea
The Airplane Game
Focus of the Game
Team Communication
The Impact of Physical structure on Lean Implementation
Training in Lean
Lean Principles- Value
Creating a customer focused culture, built on demand.
Issues in Lean Accounting
Zen Accounting: Comparison of Lean Implementation
Lean Techniques
Performance Measures
Lean in Relation to SOX
Application in Teaching
Differences Between Theoretical and Practice
Why should I care?
Origins of Lean
Framework of Lean
Improve based on Customer Want
Identify the problem
Customer Wants
Standard Costs?
• Standardized costing will not work in a lean system
o High inventory looks better for standard costing

The Game
Each Team is Going to Manufacture a Paper Airplane
We Will Split Into Groups of 4
Each person will have a different function
Purchasing Agent
Quality Control
Sales Agent
Two rounds
The Game
Purchasing Agent-Pick up the paper four pieces at a time
Production-Makes the paper airplanes, and reworks failed airplanes
Quality Control-Tests the paper air planes
Sales-Keeps track of sales worthy airplanes, sells them
Accounting Differences
Absorption costing is a dominant accounting form in Japanese companies
In the US variable costing is widely used
ABC costing reject in both countries
Japanese use product line as cost object
Zen Accounting
The Japanese uses lean accounting
Capacity accounting is important in Japanese lean
Toyota was one of first proponents of lean
Excess capacity is a good thing for lean accounting
Based on Jim Harvey's speech structures
• Why implement a lean system?
o Womack & Jones state that
• labor productivity doubles
• Inventory decreases by 90%
• Injuries decrease
• Product development and production cut in half
• Lean implementation cost are negative to moderate
• In 2-3 years productivity can double
o Swank found that Jefferson Financial:
• Decreased turnaround time by 70% in application for
• Reduced application processing labor by 26%
• Reduced error reissuance by 40%

• Where did lean accounting come from?
• The birthplace of Lean Management
• Toyota production system by Taiichi Ohno
• After WWII Japan needed a radical new way of doing things
• TPS seeks to eliminate waste at every level
• Kaizen (continuous improvement): this is the “Journey” to eliminating waste found in TPS
• Inventory is the biggest contributor to waste
• Ties up working capital
• Hides production inefficiencies
• Just-In-Time
• Founded by TPS, inventory pulled by customer demand
• Ohno denies the value of stockpiling
• Supports excess capacity
o Allows for increases when unexpected demand hits
o Decreases strain on machines
o Eliminates the need of variance costing
• Japanese managers accepting that costing is inaccurate, Lean accounting shows problems as they arise

Framework for a Lean system
The “journey” to a lean system is not an overnight affair
According to Womack and Jones:
Five Principles of Lean implementation
Value Stream
Flow and Pull

• EX: Auto Industry Failure
o Customers did not like many of the cars being produced by American companies:

• Using customer input
• Case uses customer information to design their tractors
• “Voice of the customer”
• Takt time: Rate of demand from customers
• Close relationships with customer
• Quality Leadership is needed

Not This
Quality Leadership
• Moves customer desire into action and products

• Creates the structure for customer value exploitation

• Need the tone at the top

• Align strategy with human resources

Lean Principles- Value Stream
• All activities required to create customer value
• Starts at selling, all the way to delivery
• Designing value streams create new products
• Optimize related units not the whole organization
• Similar value stream units make up the stream
• Work cells speed up flow

The Lean Organization

• Self-interest will crush a lean system, everyone needs to be in sync
• Optimize total organizational needs
• Workers in contact with customers
• Eliminate Bureaucratic, weighed down system- matrix style might work.
• Cross-functional teams
• Specialized members join to increase value
• Value-Stream Manager
o Controls all products in their value stream
o Entrepreneurial role

The Objective is perfection, with the knowledge that that is unobtainable.
Improvement Culture
• Give teams and employees tools to succeed

Unique problems to be solved for different value chains

Efficient and accurate diagnosis and repair of problems is key to lean

o Poka-Yoke: Mistake Proofing

o Jidoka: responsive processes alerting variation

Eliminate issue at the source

• HP will shut down a line if a defect is found in the system

o Address problem when found

Mapping Value Streams
• The "Value stream" is a set of all actions to bring a product from concept to launch
• Find waste
• Quantify throughput time
• Determine value added ratio
• Baseline for future state map
• Helps management understand attainment
• Helps illustrate strengths and weakness

Work Cells
• Dissimilar operations formed to produce a product family
• High quality, efficient
• Keeps materials in one area
• Variability in production is easily dealt with in this system
• Helps to meet variable demand without inefficient movements, time,
inventory, or of course waste!

Flow and Pull
Customers create the "pull" to start inventory production
• Suppliers are deeply rooted relationships
• Extension of the office
• Transparent activities on the value stream
• Removes steps and transactions from
changes in suppliers

Chocolate Baker Example
Other Considerations
Aligning employee and firm culture
Single piece flow production
Set-up time reduction
Pull-Production system
Lean Equipment Management
Give all employees decision-making power
• Giving each employee the tools
and information to make decisions and take actions when needed adds value and eliminates waste

• Need involvement from the shop floor up

• Resources needed for shop employees to convey information and ideas
• Become a learning organization

• Changes a command and control management to empowered teams

• Tie in to value stream teams, and aligning employee and organizational strategic goals

• Employees must have power, be educated in position, and accountable for activites

Information Architechture
• Information Architecture
• Distribute info efficiently to teams
• Improvement oriented performance measures
• Managerial Accounting Systems with visual control techniques
o Hand posted measurement boards, electronic displays
o Show hourly production targets
o Takt time achievements
o Real time updates of shop events

What does this acheive?
o Link daily activities to strategic objectives
o Provide visual management (information boards)
o Balance financial with non-financial information
o Transform rigid-vertical firm to horizontal decision
making system
o Motivate workers and managers through visual information an involvement
o Identify and eliminate waste
o Measure customer wants
o Accelerate organizational learning, and adapt to customer change in demands
o Translate company flexibility into specific measurement

Standard Operations
• Procedures, sequences of tasks,
and production times that are determined for a product
• Elements:
o Standard completion time per unit
o Standard operations routine
o Standard WIP-minimum WIP needed to function

Develop a Conceptual Design
• Done usually during first 6 months of implementation
• Confirming objective and Scope
o Hoshin Strategy Development
• Combines cross-company coordination with (MBO) with a collaborative
method creating consensus
• Starts at the top of the company using strategic planning
• Use formal planning charts
• Goals are then broken down by team and responsibility
• Goals not imposed, “catch-ball” process used
• Plan tossed to next level where it is modified and adapted
• Details each individual responsibility over 12 months
• Clear set of tasks, committed workers, appropriate resources available

• Creating the Burning Platform
o Use lean in a struggling segment of the business to
show the other segments what they are missing
o It is hard to “fix what ain’t broke”
o Scope can be expanded

Create Org Structure to Channel Value Stream
• Starts 6 months to 2 years in the process
o Reorganize by product line or value stream
• Identify product families, specialize the departments(sales, development, production)
• Channel the flow of value
o Devise policy for excess people
• Human effort reduced 75% in proper lean system
• Must ensure employees will keep their jobs, expand and change roles
o Develop a growth strategy
• Resources from freed up waste are placed to create value and growth in lean system
o “Instilling “Perfection Mindset”
• A culture of excellence, from the bottom to the top
• The idea of only manager creating improvements stifles growth

Installing Business Systems To Encourage Lean Thinking
• Introducing lean management accounting
o System must change to cater to a customer value centric culture
o From financially-focused to including non-financial data
o “dock-to-dock” time
o Continuous monitoring of metrics
o Standard costing becomes less useful with low inventory levels
o Value streams take direct assignment
o Variance analysis, labor efficiency measures, overhead
absorption and more contribute to inefficient system
• All lead to high overbuilt inventory
o Make accounting information understandable to everyone.
• What does volume variance even mean?
• Jargon keeps power in few peoples hands
o Provide information on a weekly basis, not regular monthly
o Continued Later.

• Transparency
o Find defects before they happen

• Develop Right Sized Machines
o Using lean to create production that will meet demand with excess capacity

Completing the Transformation
• Convincing suppliers and customers to implement lean
o Suppliers are constraints if they are not lean
o Building relationships, narrow suppliers upstream
• From top-down, to Bottoms-up!
o Give employees power, “empowerment”
o The business value streams are their own company thought process

Major Changes to Accounting Paradigm

Five Principles for Lean accounting implementation:
o Lean and simple accounting takes away waste
o Focus on measuring and understanding value to customer
o Frequent easy to understand reporting
o Planning starts from a strategic level then goes to value stream levels.
o Elimination of transactions can improve internal controls.

Value Stream Costing
The Five Principles to A Lean Accounting System
• The management of Value Stream is the key to success in a lean system.

The value stream income statement:
o Made user-friendly
o Eliminate cost of goods sold, overhead, and variances and use material purchases, employee and equipment costs, and facility
o Plain language
o Costs assigned to value streams not objects
o Differences: Sustaining cost (facility costs not attributable to value), Changes in inventory (inventory is a below the line change), Occupancy costs (utility costs applied to value streams based on square footage).
o These statements could be provided weekly or even more often.
• Value Stream unit costs:
o Standard product costing and lean do not mix.
• Standard costs are predetermined, outdated, and inaccurate for current decision making.
• Value stream costing eliminates the outdated information provided from traditional costing.
• Calculation:

Total Value Stream Cost / Number of Units Shipped
• Using this method, there is incentive to decrease inventories
• Reported weekly to reduce unfound invariability in costs

Value Stream Income Statement
Decision Making
• Notice value stream costing does not put a cost on actual products
• Why do companies use standard costing?
1. Margin &Profitability Analysis
2. Product Pricing and Quoting
3. Make vs. Buy Decisions
4. Performance Measurements
5. Financial Reporting
6. Product and Customer Rationalization
7. Measure Cost Improvement
8. Transfer pricing, Valuing Inventory
• How can lean fill these requirements?
1. When looking at accepting new orders Standard cost analysis can give misleading results:
a. Example:
i. 12 month order from new customer, 2500 units a month, 30,000 total, Selling for $130, cost $137…Lose 7 bucks a unit

2. Product Pricing and Quoting:
a. Standard Pricing Strategy: Price = Standard Cost + margin
b. Lean Pricing Strategy: Cost = Value – Required Profit
3. Make or Buy decisions:

4. Performance Measurements:
a. Box Score Format

These can be used as the key indicators of the value

5. Financial Reporting-You do not need standard product costing in financial reporting
a. All required filings can use the value stream method
6. Product or Customer Rationalization-Also uses the box score method
7. Measuring Cost Improvement
a. The savings do not come in the short term
b. Lean org must take the methods described to “continually improve” and eliminate waste in the short term
c. Creating Capacity builds the savings structure

8. Transfer pricing: Usually the only time assigning product cost is needed
9. Inventory Valuation
a. The value is much less material in a lean org
b. The materials are under better control
c. Simple valuation methods can be used
d. Days of Stock:
i. Number of days material is in raw/WIP/Finished state

Principle Summary
Value Streams are Better!
• Less Assumption and complexity in
decision making
• Information is clearly understood
• Information is real time current

Transaction Elimination
• In the past Material Requirement Planning, Manufacturing Resource Planning, and Enterprise Resource
Planning have all attempted to stoke the chaos of
processes and procurement.
o These attempted to centralize and standardize every system in order to have it controlled by middle managers
o Have been very successful in the western world
• Lean has a differing idea on how to handle the chaotic business environment
o They don’t try and control the chaos, they eliminate it at the source
o Makes complex systems useless
o Transactions are built into the operational process
o Use root cause analysis and visual lean methods
o First Steps to eliminate work orders
• Look at the current transaction requirements
• List reasons for using the transaction
• Decide how to establish lean in the long run
• Make a “maturity path” that the operations manager uses to illustrate how the org will become lean enough to
eliminate transactions
• Once implemented the transactions can be removed over time
o Bring the auditor in to make sure everything is GAAP approved

Transaction Elimination Video
The Game
The Game
What are you observations?
What worked well?
What did not work well?
How could you adjust?
Some items from the article
Eliminate travel time
Awareness of inventory
Return bad materials to vendor
Stop production when there is a bottleneck
Increase labor in bottleneck
Avoid inventory pile up
Accounting Differences
Production is key
Accounting is looked at second
Capacity excess is key to lean
Helps with bottlenecks
Don't have as specialized accounting department
Current Issues in Lean
Sox and Lean Accounting
Sarbanes-Oxley Act of 2002 was implemented after numerous companies (Enron, WorldCom, Adelphia, etc) falsified their financial statements
It has been very controversial over the past couple of years because the methods of complying with it have been difficult for many firms
Managers deal with the implementation of lean accounting, but SOX can put boundaries on how far companies can take lean accounting
Are lean accounting and SOX at odds?
When SOX Meets Lean by: Fred Garbinski
This article discusses the impact SOX has had on the auditing industry and how regulations are impacting an industry that was previously self-regulating
Garbinski states that lean accounting and SOX might be at odds, and in order for lean accountants to adhere to the rules of SOX, sacrifices need to be made
After the financial crisis of 2001-2002, SOX was implemented to regulate the accounting industry, as many thought it was out of control
SOX introducted:
Audit committee regulations
New standards
New opinion issuance regulations
CEO sign offs on the financial statements
When SOX Meets Lean
While SOX has helped improve the accuracy of financial statements, it still needs to be tweaked
Section 404 is very burdensome to auditors and firms
In 2005, the SEC chair stated that Section 404 was "misdirected"
Noted that the regulation was becoming a "check the box" activity instead of the big industry overhaul the SEC had hoped for
The need for a change is there, and former SEC Chair William Donaldson stated there is a three step process to change:
These steps will meet the rules and change them as needed over time
When SOX Meets Lean
The relationship between lean accounting and SOX
Both are process oriented
Both are related to managing risk
However, SOX is a burden for lean organizations because SOX is viewed through the eyes of public accountants, while lean is viewed through manager's eyes
Lean must use SOX, so the best way to do so is to account for it in the lean categories
Integrate COSO elements into lean
Since they are process-oriented, it will be easy to group them into procurement, conversion, distribution, and support
When SOX Meets Lean
Involves Kaizen, identification of work steps, flow of work, and time taken
SOX related activities are color codes in relation to risk level
The financial representative acts as a "custodian" to manage the activities related to SOX risk
Explains how lean accounting creates an environment that will reduce the risk of material weaknesses
Some common reasons are as follows:
Small units: smaller units have smaller materiality and errors become more common; frequent monitoring helps catch the errors and also helps the decentralizated nature of lean
Accountability: segments of the business are responsible and can control only their own business; revenues, expenses, and other financils are separated out
Get rid of "muda", which is waste in lean speak
When SOX Meets Lean
What is needed for lean integration?
Active participation
Understand internal control system
Map internal control system and financial reporting process
Identify risk related to systems
Design and implement controls designed to mitigate risk
Document controls
Modify controls to keep current with system in effect
Develop Key Performance Indicators and monitor controls for effectiveness
How Do We Measure the Success of Lean Implementation?
Since the introduction of lean accounting, managers have had a difficult time evaluating whether their lean efforts were successful
Single measures such as return on investment (ROI) and earnings per share (EPS) are universally known and widely used, but they cannot help us determine if our lean efforts are actually working correctly
To measure the success of a lean effort, companies may want to develop a lean performance score (LPS) by using the Analytic Hierarchy Process (AHP)
Developing a Lean Performance Score
A successful lean implementation will result in:
Operational improvements: higher quality, higher productivity, lower nonproductive capacity, and lower lead times
Financial improvements: increased cash flows, lower inventory levels, and lower costs
When beginning a lean journey, managers begin to question "what to measure and how to measure it"
Developing a Lean Performance Score
Analytic Hierarchy Process (AHP) was created to facilitate decision making for multi-criteria problems
AHP uses paired comparisons of elements with respect to a common goal or criteria; elements deemed as important to a goal are paired so that individuals or groups can judge the relative importance of one element over another with respect to a goal
The end result of AHP is a set of weights derived from the pairwise comparisons
AHP can be used by management to develop a score to measure and monitor a company's lean performance
Lean Performance Measures
Example: Participating Companies
Example: Selected Weights
Example: Weight Comparisons
Example: Lean Performance Measures
LPS Example
Example: LPS Deterioration
Developing a Lean Performance Score
Once the AHP is completed, managers need to identify the specific performance measures used to monitor each element
A lean performance system should have both a current and a future state. Management should devote time to set performance targets and explicitly display those targets so co-workers can monitor the success of the lean implementation
An LPS needs to be tailored to the organization - the specific performance measures, the weight of each measure, and the aggregation method all depend on management's goals and objectives
Developing a Lean Performance Score
Developing an LPS is a five step process:
Step 1: Determine the lean performance elements to use. The key is selecting the few measures that best evaluate the success of the lean program
Step 2: Have knowledge individuals rank the elements selected in step one using AHP
Step 3: Determine the future-state goals for each measure used in the LPS. This is crucial. Once the future-state time period is determined, a targeted objective for each performance measure is required. The targets shoudl be attainable yet not easily reached
Step 4: Compute the LPS using the results of the previous steps
Step 5: Publish the LPS. Developing an LPS is an academic exercise if it isn't published and updated on a regular basis. The LPS provides feedback needed to continuously improve
Developing a Lean Performance Score
Pros of an LPS:
Provides a single metric to gauge the level of lean implementation success so it's easy to understand
Employees can grasp its meaning, and companiescan use the scores to motivate and compensate accordingly
Clarifies the improvement priorities via the weights used in building the score
Cons of an LPS:
Some concerns over using a single-composite system
Time lag between operational improvements and improved financial results
Overall, having a measurement system is important
If you don't measure the organization's lean transformation, you cannot monitor it, which means you cannot manage it, and it will ultimately fail
We all know that lean accounting is beneficial, as it helps decrease costs and increase productivity
However, some firms are more successful in their implementation efforts than others
WHY? What are the successful firms doing that others are failing to do?
Unleashing Lean's Potential, One Behavior at a Time
An organization's culture will ultimately determine whether Lean will suceed or fail in the long term
Changing the culture is the responsibility of every individual in an organization, from line workers to the CEO
An organization's culture does not change overnight; it changes one behavior at a time
Lean behavior develops as everyone understands his or her role and responsibilities in achieving success
Unleashing Lean's Potential, One Behavior at a Time
The article gives an example containing two sister companies: MedScan and MedTech (names have been changed)
MedTech supplies MedScan with detectors, the primary imaging technology used in MedScan's medical scanners
A changed mind-set and culture are vital
If an organization is unwilling to change its mind-set and culture, a lean transformation becomes just another failed experiment
Unleashing Lean's Potential, One Behavior at a Time
The end result is an organization's transformation to a lean culture where lean is no longer an "initiative" but a way of life
Top management's responsibilities are to support and commit to the lean initiative. They must also provide vocal support for lean and commit the necessary resources
For example, the owner of MedScan and MedTech communicated his support for the lean initiative by sending out an open letter to all employees stressing the need to continuously improve
Unleashing Lean's Potential, One Behavior at a Time
Everyone began to grasp what lean was all about and how the company's fortunes - and their own - were tied to its successful implementation
For the employees, lean meant job protection. Many saw the lean effort as a way for both companies to remain competitive while ensuring they had continued employment
The company brought in an outside consulting group that helped employes push through their initial resistance to change
Why do you think there was an initial resistance to going lean?
Unleashing Lean's Potential, One Behavior at a Time
At first, there was a HUGE resistance to change
Old system: a gantry (the frame housing the detectors and other components of the imaging device) was placed on the production floor, and employees walked from gantry to gantry to complete assembly and testing
New system: Gantries were placed on a conveyor belt and were moved down the production line, and employees stayed in one place
Employees resisted the change at first, but once convinced the gantries had to flow, they became concerned with HOW the gantries would flow
Unleashing Lean's Potential, One Behavior at a Time
Important for lean organizations to also be learning organizations
Because employees see operations first hand, they might have ideas that can further lean out a process
In this case, employees began to make suggestions, such as installing a "lazy Susan" at a work site consisting of three workstations
"Yellow Room" project
Management took these suggestions seriously because the line workers are the heart of lean efforts
MedScan and MedTech were successful in their lean implementations because everyone understood their roles and responsibilities
Do Lean Implementation Initiatives Have Adequate Accounting Support?
Lean accounting experts have argued that using traditional costing in lean manufacturing enterprises is a nonvalue-adding, wasteful effort
Based on the "debate of duality" concept, this study uses paradigms of duality to take the form of strategic choice vs. environmental determinism
Lean implementation is a strategic choice. The process has been described as "a carefully constructed conceptual architecture that supports the structural, interpersonal, external, and internal relationships governing a company's operations. This architecture creates the platform for accounting to support the decisions that govern these relationships".
Is there accounting support for lean implementation?
We are interested in (1) lean operations and (2) accounting changes
The decision to bring about changes to an accounting system depend on conscious choices made by accounting staff and the extent of their knowledge of lean
Organizational change is the function of environmental factors, which can be internal or external
Four internal constraints can hinder lean implementation:
The inability to easily transfer investments
Lack of full information to the decision makers
Political constraints within the organization
Constraints arising from history
Three stages of progression on the lean implementation maturity path:
Stage 1: introduces the pilot lean production cells where the organizations identify the value streams, map the value streams, and introduce improvements to the value-stream flow
Stage 2: lean thinking is widespread throughout the organization; uses value steams to manage the business and takes steps for continuous process improvement
Stage 3: reorganizes itself around the value streams to avoid waste in every form
Quadrant 1 (Q1): depicts an enterprise in the initial stages of lean attempting to identify and map the value stream and introduce improvements to the value-stream flow. Lean production may still be in its pilot stages
Quadrant 2 (Q2): depicts an enterprise that might have taken active steps to implement lean and making changes to their accounting systems, but legacy factors that may not be changed in short period may constrain the unit from progressing further on the lean maturity path
Quadrant 3 (Q3): depicts an enterprise that is totally lean, where environmental constrains are very low and the manufacturing plant may have maximum flexibility to adopt lean strategies
Quadrant 4 (Q4): depicts organizations that are "stuck in the middle", where the decision makers may not be adopting proactive strategies, but may just be "muddling through"
The analysis indicates that the accounting initiatives for lean implementation may be inadequate in U.S. lean manufacturing enterprises
Although this study highlights the lack of lean accounting initiative to support lean implementation, it does not provide a complete and holistic analysis of the accounting practices in lean manufacturing enterprises
Provides a bird's eye view of the dichotomy between lean implementation and corresponding accounting support for lean implementation
The usefulness of the debate of duality in understanding the deeper structural factors that explain the working of social systems
Relevance Lost: The Practice/Classroom Gap
Lean accounting is the development of a costing and performance measurement system in support of an organization's lean initiatives
Advocates of lean accounting recognize that standard costing systems often push back against lean initiatives and may even encourage behaviors contrary to lean
The number of firms implementing lean accounting has been increasing
Because of this, it is appropriate to conclude that university accounting programs also reflect the increased attention to these topics
However, there is a lean practice/textbook gap
Leading textbooks contain little or no coverage of lean and lean accounting
If lean topics are being covered by the faculty teaching these courses, the professors are likely using significant supplementary materials
No clear evidence that these topics are being required in cost and managerial accounting courses, and there is also little evidence about the methods and materials being used to supplement the textbook, if there is such course coverage
Sent a survey to faculty members who were listed as having cost or managerial accounting as a teaching/research interest
Out of the 1,440 that received the survey, 352 responded, for a 24.4% response rate
45% of those indicated they were teaching a managerial or cost accounting course required of accounting majors
The selected topics in the survey included:
Value stream mapping: this is important because value as defined by the customer, the first principle of lean, is created in a value stream
Elimination of waste
Toyota Production System (TPS) and the Toyota Way (TW)
Visual control systems and performance measurement in a lean environment were also included as topics as they are in sharp contrast to the traditional control and performance measurement philosophies found in most managerial/cost accounting textbooks
The survey results confirm there is a lean practice/classroom gap that begain with a review of some of the most recent editions of managerial and cost accounting texts
A significant majority of respondents indicated that their current text of choice did not provide coverage of these important topcs
A vast majority of faculty members responding did not supplement this lack of text coverage because they lacked the class time and were not familiar enough with the topics
Accounting professionals feel that graduates are coming out of college with little knowledge or appreciation for lean accounting practices
Because some of us will find careers down the road outside of tax or audit, it is important that we understand lean accounting
Applying Lean Principles to Design, Teach, and Assess Courses

What are some buzzwords you think of that associate with Lean?

What activities or items in your life could you eliminate to make it "leaner?"
What experience do you have in your organizations with any of these processes?
What organizations practice Lean that you are aware of?

How do I empower employees?
How do we become "perfect?"
Decison Making
Decision Making
Key Indicators
Discussion Question?
What did you think about the clip?

What stuck out to you?
Discussion Question?
How could value stream costing and lean in general be used in service industries?
Discussion Question:
As stated in the article, SOX and lean are at odds, yet they are similar in their framework and processes. Because lean implementation requires the use of SOX, how can companies deal with this?
AutoLiv Case
Discussion Question:
Do you think using the LPS system could backfire in any way?
- If so, why?
Discussion Question:
Besides cost, what are some other reasons for the lack of accounting support?
Discussion Question:
- How many of you attended UNL for your undergrad?
- If you did not, where did you go?
- What UNDERGRAD classes taught you about lean accounting? How in depth did they go?
- If you had graduated without going on to the MPA program, would you have known enough to implement lean accounting at your new job?
Discussion Questions:
- Overall, what do you think about this?
- Would changing courses to mirror somethign like this be beneficial or is it too far fetched?
- What problems could you see happening?
Discussion Question:
Does this information surprise/scare you? Why or why not?
What makes a good leader, what traits do you find to be the most important?
Only one supplier?

Are young accountants Empowered?
Is the industry built that way?
Full transcript