The methods and concepts presented in the bestselling first edition revolutionized the approach to the management and control of Lean companies. Enhanced with extensive end-of-chapter exercises and a CD-ROM with Lean accounting tools, the second edition of this preeminent practitioner’s guide is now suitable for classroom use.
Practical Lean Accounting: A Proven System for Measuring and Managing the Lean Enterprise, Second Edition explains exactly what it takes to transform a traditional accounting system to one that supports and enhances a company’s Lean efforts. Defining the fundamental principles of Lean accounting, it demonstrates how to use them to identify and eliminate wasteful transactions. The book includes coverage of cell performance measurement, use of the box score, operational and financial planning, cost targeting, Lean accounting diagnostics, and value stream mapping. Retaining the easy-to-use format that made the first edition a bestseller, this updated edition includes:
The book contains a wealth of tools that makes it ideal for company training sessions and advanced undergraduate and graduate-level courses. For each major example provided, two similar problems are included—one for instructors to guide students through and a second for students to work through on their own. An additional set of problems and questions for testing purposes are also available to instructors on the authors’ website.
Unfortunately, during the publishing process mistakes can be made that are not caught before the book is printed. Productivity Press takes great care to catch any errors prior to the printing stage. If any errors are found that have an effect on the understanding of a subject or mathematical equation, we have published them at: http://www.maskell.com/lean_accounting/subpages/free_stuff/PLA2%20Errors%20_Corrections_20130130.pdf
Why Is Lean Accounting Important?
How Standard Costing Can Drive Wrong Behavior
We Need to Show the Financial Impact of Lean Improvements
We Need a Better Way to Understand Product Costs
We Need New Kinds of Lean Performance Measurements
We Need to Eliminate Waste from Accounting Processes and Systems
We Need Better Ways of Making Decisions
We Need to Focus Our Business around Customer Value
Exercises and Discussion Questions
Maturity Path to Lean Accounting
Cell Performance Measurements
Financial Benefits of Lean Manufacturing
Lean Financial Accounting
Managing by Value Stream
Value Stream Performance Measurements
Value Stream Costing
Using the Box Score
Reporting Value Stream Performance
Showing the Effects of Lean Improvements
Showing the Effects of Strategies and Plans
Calculating Product Costs—Features and Characteristics
Eliminating More Wasteful Transactions
The Internal Control System
Sales, Operational, and Financial Planning (SOFP)
Purpose of Lean Sales, Operations, and Financial Planning
Lean Financial Planning
Lean Sales, Operations, and Financial Planning
Value Stream Demand Planning
Value Stream Operations Planning
SOFP Planning Meeting
Executive SOFP Meeting
Variations on a Theme
Making It Happen
Lean Financial Accounting II
Further Advances in Lean Accounting
The Lean Enterprise
What Is a Lean Enterprise?
What Lean Methods Support the Wider Lean Enterprise?
Why Are Lean Enterprises So Hard on Themselves?
Expanding Value Streams Outside Our Four Walls
The Lean Value Stream Revisited
A Vision of the Expanded Value Stream
Examining Value and Cost within Our Own Company
Example of Effective Value Stream Expansion
The Lean Accounting Diagnostic
The Maturity Path Revisited
Overview of the Diagnostic Tool
Working with the Diagnostic Tool
Performance Measurement Linkage Chart
The Performance Measurement Framework
Creating the Performance Measurement Starter Set
Steps for Developing Performance Measures in Your Company
Transaction Elimination Maturity Path Table
Value Stream Cost Analysis
Value Stream Mapping
Value Stream Maps and Lean Accounting
More Value Stream Steps on the Value Stream Map
Data Box Information
Praise for the New Edition:
… a no nonsense approach to bringing continuous improvement to areas of the company not normally involved in the typical Lean implementation. Following the authors' guidelines has allowed us to create an entirely new way of looking at our company’s performance and has exposed many more opportunities for improvement that we never knew existed.
—Roy St. Andre, Executive Vice President, EIS Wire & Cable Co.
Practical Lean Accounting is a fantastic book, and the new edition is even better. This book makes a huge contribution towards understanding how to measure and manage a Lean enterprise. The addition of many new case studies and examples after each chapter, and more tools and practical information on the accompanying CD, makes the second edition worth buying again, even if you already have the first edition. Last, but not least, the book is even better suited for use in university accounting courses and in corporate Lean accounting training programs. … destined to have a big, positive impact on supporting organizations on their path to Lean management.
—Professor Bob Emiliani, Central Connecticut State University
Praise for the Bestselling First Edition:
... focuses on the key principle of Lean thinking, which is creating value for the customer. This focus highlights the need to measure financial progress from a perspective of relevant business issues and real cost instead of traditional standard cost methods. This is a much needed practitioner's book for the manufacturing industry.
—J.T. Battenberg III, Chairman, CEO and President, Delphi Corporation, June 2004
... provides a very comprehensive and straightforward approach to this most difficult topic. A must read for the serious Lean practitioner.
—Mark DeLuzio, President, Lean Horizons Consulting LLC, June 2004
... a highly readable and uncomplicated guide for financial and other managers of Lean companies and will no doubt become an invaluable reference for years to come.
—Fred Garbinski, Parker Hannifin Corporation, June 2004