3. Definitions Lean Accounting Applying lean concepts to drive waste out of the accounting function itself Accounting for Lean Modifying the accounting process to properly deliver information which promotes lean behaviors
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6. Lean Measurement Lean performance measurements drive and support lean performance Strategic Issues Increase Cash Flow Increase Sales & Market Share Continuous Culture Improvement Strategic Measures Sales Growth Cash from Operations Inventory Days On-time Delivery Customer Satisfaction Sales per Employee Value Stream Measures Sales per Person On-time Delivery First Time Through Average Cost per Unit AR Days Outstanding Process Measures Daily Production WIP to SWIP First Time Through Operational Effectiveness
7. Lean Accounting Primary method of lean control for meeting customer needs and driving continuous improvement Save time, money & confusion by radical elimination of wasteful transactions Understand the financial impact of lean improvement & create a money-making strategy Drive the business from the customer value – not the cost Manage the business by value streams with accountability for growth, profitability, and continuous improvement Simple, direct & accurate way to create financial reports. Very few transactions Value Stream Costing Lean Decision Making Target Costing Financial Impact of Lean Improvement Transaction Elimination Performance Measurement Lean Accounting
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