By McVay, Gloria; Kennedy, Frances; Fullerton, Rosemary
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Additional info for Accounting in the Lean Enterprise : Providing Simple, Practical, and Decision-Relevant Information
Similarly, the operations people don’t have a grasp of what the accountants are doing and how they could become valuable strategic decision makers. If lean is really a total business strategy, then it must be used in all parts of the company, and all employees should participate in improvement initiatives that further lean principles. Lean Accounting Principles We have spent considerable time talking about how not to account for lean. Now it is important to determine how to create an accounting system that supports lean organizations.
Engineers, accountants, salespersons)? If you have monuments that are almost impossible to eliminate, what are some appropriate alternatives for allocating monument expenses? What are the key criteria for choosing a method of cost assignment? Is it possible to maintain a departmental organization structure and still effectively implement lean? Discuss. Who should be involved in value stream mapping and under what circumstances is that process most beneficial? What are some effective methods for defining and managing value streams that are not a natural fit?
Changing the Internal Accounting Reporting System As iterated previously, the objectives in a lean environment for the internal reporting system are to have it simple, easy to understand, flexible, and relevant for decision making in a continuous improvement environment. Accountants are by nature often resistant to major change. They must be educated to the need for change and the expectations for their roles as critical change agents, not as extraneous number crunchers of outdated reports. Their jobs should become more creative, challenging, and value-added.
Accounting in the Lean Enterprise : Providing Simple, Practical, and Decision-Relevant Information by McVay, Gloria; Kennedy, Frances; Fullerton, Rosemary