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Lean

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by

John Simard

on 16 November 2011

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Transcript of Lean

Lean Accounting
Big and....
... small
Accurate clear information
Lean and simple business accounting
Continuously eliminate waste from transaction processes, reports and other accounting methods
Value stream mapping
Kaizen
PDCA problem solving
Accounting processes that support
lean transformation

Management control
Cost management
Customer/Supplier value and cost management
Performance Measurement Linkage Chart
links the metric for cell/process, value streams, plant & corporate reporting to the business strategy, target costs and lean improvement
Value stream performance boards
Box scores for value stream performance
Value stream costing
Value stream Income statements
Target costing
Clear and timely communication
of information

Financial reporting
"Plain English" financial statements
Simple, largely cash based accounting
Visual reporting of financial and
non-financial metrics
Visual performance boards
Decision making
Using box scores and value stream costing for incremental costs and profitability analysis
Lean planning
Planning and budgeting
Impact of lean improvement
Capital planning
Invest in people
Hoshin policy deployment
Sales, operations and financial planning
Value stream cost and capacity analysis
Value stream maps and box scores
Impact of capital expenditure on value stream box scores
Performance measurements track improved participation, employee satisfaction & cross training
Strengthen internal accounting control
Internal operational controls
Transaction elimination matrix
Process maps of controls and SOX risks
Inventory valuation
Simple methods without perpetual records
*this list was derived from information on Maskell.com
Performance Measurement Linkage Chart
Value stream performance boards
Box scores for value stream performance
Value stream income statements
PDCA problem solving
Value stream mapping
Visual performance board
Profitability analysis
Absorbtion statements drive:
overproduction
high inventory
hide losses
"We must produce more this
year. How else do we defray
the costs of overproduction
last year?"
Lean Business Management
Lowers pressure to overproduce
Utilize visuals for performance
Increase throughput
Lower employee turnover
Non-financial metrics
There has to be a better way to do this...
A new set of values for the firm
Maybe Lean accounting is the future...
Where is value added in this process map? How much time is spent adding value?
How everything ties together
Lean Airplane Game
Get in groups of six
Each team needs:
a purchaser
a tester
a sales agent
and 3 production
Pick up your Job Sheet
at the front of the class
Is it expensive?
...and get off my desk!
Let me show you!
Full transcript