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Wednesday, September 12, 2007

Accounting For Lean Tastes


From: Industry Week
By: Jill Jusko

Manufacturers are showing growing support for lean accounting, which proponents say more accurately reflects activities of a lean organization.

There has been a "quiet revolution" unfolding the past few years among lean manufacturers, centered on the idea that traditional accounting measures don't accurately reflect the true results that lean delivers -- to the point that they sometimes promote the very opposite of lean. In fact, according to Brian Maskell, president of consulting firm BMA Inc., "Traditional accounting systems are actively harmful to lean organizations," necessitating an overhaul of the entire process in favor of lean accounting. Current signs indicate that the lean accounting movement is finding traction within the lean community.

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