Practical Lean Accounting: A Proven System for Measuring and Managing the Lean Enterprise

by Brian H. Maskell, Bruce Baggaley, Larry Grasso

Practical Lean Accounting demonstrates the adjustments that must be made to accounting systems in service of companies implementing lean operations. The author uses a single case study to illustrate the lean accounting actions that need to occur with each stage of an organization’s transformation. In addition to recording lean activities, the financial methods taught also serve as tools to help map out and facilitate the transformation to lean. A CD-ROM is included containing detailed forms, charts, and diagrams that can be put to actual use by CFOs, controllers, accounting staff, and general managers in companies making the move to lean.

Genres: Business

384 pages, Paperback

First published December 19, 2003

Reviews

[Shamus McCarty · Rating 4 out of 5]

I don’t have the energy to write a decent review for this book right now. But when I saw how few reviews it had, I felt the need to write SOMETHING!

So, real quick. As any accountant knows: assets = liabilities + equity.

As we all know, this is very important because it builds redundancy.

Redundancy is important, it catches errors.

The problem is, to much redundancy creates unnecessary waste. Instead of focusing on redundancy, we as accountants should focus on getting things right the first time. And eliminating waste. Our colleges don’t teach us that though. They teach us to be redundant.

Lean accounting, and manufacturing for that matter, are not new ideas. We taught this shit to the Japanese after we blew up their country. We learned it when we lost half of our workforce to fighting them.

The Japanese took these lessons to heart. We got our workforce back and lost these principles in Union bureaucracy. Fast forward a few decades and they kicked Detroit’s ass in production, quality and price. Our automobile factories went to Mexico, the UAW was destroyed, and GM lost its crown as the best-selling automobile manufacturer.

Little yellow guys from Toyota came over, retaught us what we forgot, and all that knowledge is in this book.

The End.

[Vincent Vanderheeren · Rating 4 out of 5]

I read it from a knowledge work perspective, and was afraid that manufacturing accounting models wouldn’t map on knowledge work. Both worlds are very different for sure, and it definitely is not a 1-on-1 mapping. This book however provides lots of inspiration on how to apply value stream management, cost analysis and target costing in order to pave the way for increased customer value delivery. Continuous improvement as explained here is not just a next management fad. This is about real commitment, vision, and a dedication on truly serving your customer. Product development still has a long way to go.

[Christopher R · Rating 5 out of 5]

Essential for manufacturing

Essential for manufacturing. A requirement of the SME.org certification process. These processes focus an organization on value to the customer.