| LA Master Class - 01 |
LA - HIGHLIGHTS
| Lean Accounting Case History 1 |
Lean Accounting in an Automotive Components Manufacturer The Company: Our client is a middle-sized company in the automotive industry. It has two main business units: the After Market Division and the OEM Division. The Challenge: The company, due in part to its history, was already divided into Value Streams and had already started a lean transformation process. What was missing was an information system capable of measuring the results of this transformation. The Action: Our job had two goals: create a set of indicators, accepted by all parties involved (Operations, Accountants, etc), in order to measure Value Stream performances and allow management accountants to produce timely income statements by Value Stream according to the principles of Lean Accounting. The Results:Today every Value Stream has a similar set of indicators and these indicators are available for all those interested (Operations, Techical design, Management Accounting, Purchasing etc.). The indicators refer both to operational performances and to economic and financial results. They are available within 5 working days and the effort required to produce them is quite limited. Everybody in the company agrees that these indicators are very useful to guide and to monitor the improvement process: people working in each value stream can now constantly and effectively measure the effects of their actions. |
| Lean Accounting Case History 2 |
Lean Accounting in a Pneumatic Components Manufacture The Company: Our client is an Italian company specialized in the production of pneumatic components for industrial automation. The Challenge: The company has transformed its product family “cylinders” according to the principles of lean manufacturing, but their management accounting system has remained unchanged and based on traditional concepts such as the determination of unit standard costs. Being increasingly conscious of the inadequacy of this system to measure the effects of a lean transformation, they have consulted us to learn and then apply the principles of lean accounting. The Action: Our job has had the following objectives: Teach a number of managers of various areas the principles of lean accounting- Activate the lean accounting system for the cylinder flow - Verify the benefits of the new system and its applicability to other areas. The Results: Today the company is able to produce, at each month end and within two working days, all significant performance indicators (Supplier Service Analysis, Customer Service Analysis, Inventory Cross Analysis, OEE) as well as all economic and financial indicators (Profit & Loss Account, Cash Flow, Takt cost, return on investment, Income per person etc.) |
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