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Solving the Standard Costing Problem: Value Stream Costing – Brian Maskell (LE0605)
Why Successful Lean Implementations Can Punish the P & L – Jerry Solomon (LE0608)
Whoa! My World Changed – Jean Cunningham (LE0609)
What is this "lean accounting thing" all about? Here from Brian Maskell, Jerry Solomon, and Jean Cunningham, all pioneers of the movement. They will take the veil off of Lean Accounting and shed light on why more than 500 people attended the 2nd annual Lean Accounting Summit.
Solving the Standard Costing Problem - Brian H Maskell, President, BMA Inc., Cherry Hill, NJ
Standard costing - and other full absorption product costing methods - is actively harmful to the lean manufacturer. Traditional standard costing methods calculate the product costs wrongly, they lead to bad decision making that in turn lead to reduced revenues & lower profitability, and the processes required to maintain a standard costing system are complex, time-consuming, and very wasteful. In addition, standard measurements like earned hours, efficiency, machine utilization, and absorption variances actively undermine what we are trying to achieve through lean transformation.
This workshop will show how value stream costing is used instead of standard product costing to provide excellent control of costs, valid and meaningful information for decision-making, and the financial numbers required for external GAAP reporting.
We will discuss how to create a simple, summary direct costing of the value stream, weekly value stream income statements, and how this information can be rolled-up to provide month-end report for internal use and external reporting. Using a case study we will demonstrate how pricing, quoting, margin analysis, make/buy, sourcing, and other routine decisions can be made quickly and easily using value stream costing.
Agenda:
- What is the standard costing problem?
- Value stream costing and value stream income statements
- Decision-making using value stream costing
- Making it happen
Why Successful Lean Implementations Can Punish the P & L - Jerry Solomon
As a Lean implementation leader you are ready to tell your CEO that the greater your success, the greater the potential drop in earnings? Would you like to know the three causes of earnings decline during a Lean implementation, how they can be calculated in advance, and what you must do to address this critical issue? Save yourself from experiencing this bitter surprise by attending Jerry Solomon’s presentation, “Why successful Lean Implementations Can Punish the P & L.”
Whoa! My World Changed! - Jean Cunningham
What is it about Lean Manufacturing that drives us to change Accounting? Jean will describe how the changes in Manufacturing and Procurement created a mandate for change in accounting techniques. She will also describe some specific how to’s for launching these new techniques in your company. Jean Cunningham is co-author of “Real Numbers, Management Accounting in the Lean Organization,” 2004 Shingo Prize Recipient |
