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

by Brian H. Maskell, Larry Grasso, Brian H. Maskell

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 downloadable resources with Lean accounting tools, the second edition of this preeminent practitioner’s guide is now suitable for classroom use. Practical Lean 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 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.

Genres: Business

482 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.