New PDF release: Accounting in the Lean Enterprise : Providing Simple,

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By McVay, Gloria; Kennedy, Frances; Fullerton, Rosemary

ISBN-10: 1420088580

ISBN-13: 9781420088588

ISBN-10: 1420088599

ISBN-13: 9781420088595

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Extra resources for Accounting in the Lean Enterprise : Providing Simple, Practical, and Decision-Relevant Information

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Some are tracked at the cell level, and some are tracked for the value stream as a whole. Overall, strategic metrics should first be determined at the enterprise level, and then cascaded down to the site, value stream, Value Stream Management ◾ 21 and cell levels so there is full alignment of measures. Chapter 9 goes into detail on the selection and implementation of performance measures to support a lean strategy. As stated before, all value stream measures should be directly traceable to the value stream and to those who are responsible for and have influence over their results.

For most companies, it is a dramatic cultural change to turn off the traditional accounting system and discontinue tracking and analyzing conversion cost variances. Also, accountants and managers need reassurance that the new system is working effectively and properly valuing inventories before eliminating the old one. Thus, many companies maintain the old system and the new system simultaneously for a short period of time. Obviously, running two systems is contrary to the lean philosophy of waste, but it may be necessary until people have confidence in the effectiveness of the new reporting system.

Fiume. 2003. Real numbers: Management accounting in a lean organization. Managing Times Press, Durham, NC. Fullerton, R. , F. Kennedy, and S. Widener. 2013. Management accounting and control practices in a lean manufacturing environment. Accounting, Organization, and Society 38: 50–71. Johnson, H. , and R. S. Kaplan. 1987. Relevance lost: The rise and fall of management accounting. Harvard Business School Press, Boston. , and S. Widener. 2008. A control framework: Insights from evidence on lean accounting.

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Accounting in the Lean Enterprise : Providing Simple, Practical, and Decision-Relevant Information by McVay, Gloria; Kennedy, Frances; Fullerton, Rosemary


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