Lean Accounting
LEAN ACCOUNTING: BEST PRACTICES FOR SUSTAINABLE INTEGRATION
"Costs do not exist to be calculated. Costs exist to be reduced.”
– Taiichi Ohno, father of the Toyota Production System
Lean Accounting-It is simply the application of lean principles to the accounting and associated functions within the enterprise. The idea is simple, but the application is not obvious within the framework of traditional accounting systems.
Lean Accounting was born in the early 90’s through the experiences of Jean Cunningham at Lantech, Orry Fiume at Wiremold, and Mark DeLuzio at Danaher. It was frowned on mightily by financial professionals from the start and is by many to this day. Change in long-established systems is difficult to visualize and harder yet to take the first step towards implementation.
•It identifies and eliminates non-value add waste in the accounting process and IS reporting processes
•It improves visual reporting on product lines
•It adheres to all GAAP recommendations.
•It does not impede Sarbanes-Oxley rules.
•It realigns accounting activities to a consulting role rather than a transaction role.
Lean manufacturing creates a mandate to challenge traditional cost accounting. Lean accounting is the natural result, and Jean Cunningham Consulting provides a proven alternative to traditional cost accounting. When the finance department adopts lean principles, it provides a stage that enables the accounting team to move from a transaction focus to a new high visibility role of consulting within other areas of the company.
There are great short and long term advantages to creating a culture of total involvement that can revolutionize the role of your accounting team and its ability to impact your company’s future success.
LEAN ACCOUNTING SEMANTICS
Lean accounting has two distinct areas that may be applied at different times on your lean journey.
"Lean for Accounting" = Applying lean tools (5S, process or value
"Costs do not exist to be calculated. Costs exist to be reduced.”
– Taiichi Ohno, father of the Toyota Production System
Lean Accounting-It is simply the application of lean principles to the accounting and associated functions within the enterprise. The idea is simple, but the application is not obvious within the framework of traditional accounting systems.
Lean Accounting was born in the early 90’s through the experiences of Jean Cunningham at Lantech, Orry Fiume at Wiremold, and Mark DeLuzio at Danaher. It was frowned on mightily by financial professionals from the start and is by many to this day. Change in long-established systems is difficult to visualize and harder yet to take the first step towards implementation.
•It identifies and eliminates non-value add waste in the accounting process and IS reporting processes
•It improves visual reporting on product lines
•It adheres to all GAAP recommendations.
•It does not impede Sarbanes-Oxley rules.
•It realigns accounting activities to a consulting role rather than a transaction role.
Lean manufacturing creates a mandate to challenge traditional cost accounting. Lean accounting is the natural result, and Jean Cunningham Consulting provides a proven alternative to traditional cost accounting. When the finance department adopts lean principles, it provides a stage that enables the accounting team to move from a transaction focus to a new high visibility role of consulting within other areas of the company.
There are great short and long term advantages to creating a culture of total involvement that can revolutionize the role of your accounting team and its ability to impact your company’s future success.
LEAN ACCOUNTING SEMANTICS
Lean accounting has two distinct areas that may be applied at different times on your lean journey.
"Lean for Accounting" = Applying lean tools (5S, process or value