Lean Accounting: Best Practices for Sustainable Integration | Date: 26 April 2011, 01:20
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Why are some established lean enterprises so durably successful while so many others fail miserably? Because many companies attempt to adopt lean production techniques piecemeal, without fully understanding the company-wide implications of lean production methods. In Lean Accounting: Best Practices for Sustainable Integration, the field's most innovative thinkers prepare CFOs and accounting/finance staff to alter their traditional accounting practices to fully meet the demands of lean production principles.
Starting with the Foreword by Peter Senge, Director of the MIT Sloan School of Management, Lean Accounting presents the collected insights of some of the most experienced lean accounting and performance measurement practitioners in America—including renowned?business visionary H. Thomas Johnson. This insightful book distills concrete steps that employees at all levels can use to accomplish the lean transformation together in the workplace. Unlike the Balanced Scorecard, activity-based costing and management, or many of the other tools that can be integrated into the overall?enterprise ecosystem, lean is its own ecosystem—an entirely integrated set of subsystems that cannot be adopted in a here-and-there fashion to manage a limited number of?enterprise activities. Lean Accounting provides perspectives on the ways that established lean enterprises treat accounting and?performance measurement practices as subsystems that support an integrated approach to?product and service delivery.
Organized into three comprehensive parts, Part One addresses the lean principles, enterprise design, and leadership?characteristics that form the foundation of a successful lean transformation. Part Two discusses adaptive thinking in the appropriate application of lean performance measurements and the way lean systems use lean measures to intrinsically motivate continuous employee performance improvements. Part Three builds on this foundation with an in-depth?exploration of the accounting challenges that support the principles and goals of the lean system environment, such as standard costing methods, regulatory compliance, the shortcomings of traditional accounting systems and tools, pricing custom products without a standard costing system, the ways that?accounting motivates behavior in the lean enterprise, system designs for lean accounting, barriers to lean accounting, customer-driven lean cost management, and strategic deployment?to drive profitable growth.
The Toyota Production System is unquestionably the gold standard of lean practices, marked by continuous, sustainable adaptation and well-being that place Toyota at the top of a highly competitive marketplace. The book provides an in-depth chapter-by-chapter treatment of the many different ways that Toyota uses its integrated system to maintain its competitive advantage. In addition, each chapter describes clear steps to help executive leaders and managers work with fellow employees to lay down the cultural foundations necessary to support sustainable lean processes.
A must-read for all CFOs, controllers, management accountants, and consultants, Lean Accounting will help readers readily adapt their practices in the lean manufacturing environment.
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