By McVay, Gloria; Kennedy, Frances; Fullerton, Rosemary
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Extra info for Accounting in the Lean Enterprise : Providing Simple, Practical, and Decision-Relevant Information
1 Typical value stream mapping icons. Data Box adjusts line spacing. next. Yellow handle Select shape and type Customer/ Supplier Kaizen Burst Process Box Shipment Physical pull Kanban Post Timeline Total Safety/ Buffer Stock Withdrawal Kanban Electronic Information Shipment Arrow 18 ◾ Accounting in the Lean Enterprise: Providing Simple, Practical, and Decision-Relevant Information Value Stream Management ◾ 19 Current State–A/R Collection Process Processing Time = 30–50 Minutes Lead Time = 31–62 Days Monthly Notice Customer Payment • Companies • Individuals ent Pre-Paym end ee At t Finalize ﬁrm on e, C etc.
Productivity Press, New York. , and J. Shook. 2003. Learning to see: Value-stream mapping to create value and eliminate muda. Lean Enterprise Institute, Cambridge, MA. NUTS AND BOLTS OF LEAN ACCOUNTING II Chapter 3 Principles of Lean Accounting The impetus for this workbook was to discuss the need for an accounting system that is more relevant and supportive of a lean environment than the traditional costing systems used in the majority of firms today. This chapter will provide you with an overview of how that system may be formulated and implemented.
But if we look more closely at these arguments, we find that they are not valid reasons for maintaining a costly system that doesn’t effectively support the lean enterprise with adequate planning and decision-making information. With the exception of cost-plus contracts (as with some government and other noncompetitive contracts), selling prices are normally market driven, and not directly tied to a standard unit cost composed of estimated direct material, direct labor, and manufacturing overhead components.
Accounting in the Lean Enterprise : Providing Simple, Practical, and Decision-Relevant Information by McVay, Gloria; Kennedy, Frances; Fullerton, Rosemary