Questions? Contact us and we will respond within 48 hours.

Lean Accounting

"If this Lean manufacturing is so great, why am I
not seeing any bottom-line improvement? Where is the money?"

Lean Accounting reflects the progress of your Lean Enterprise Transformation efforts. Absorption and labor reporting are not necessary. Inventory is a waste and should not influence product costs or indicate profit.

Lean Accounting is the pursuit of eliminating the waste in information flow. No transaction or step is sacred. The first question is, Can it be eliminated? If not, is there another method that will achieve the same results?

Benefits from Lean accounting include:

Value Streams metrics (box-scores) must be in-place.
Product costing is not based on standard costs or inventories.
Profit and loss is defined by Value Streams.

Every step in the process — from the receipt of request to order fulfillment, accounts payable to accounts receivable, general ledger to material replenishment — is subject to scrutiny.

Get your value stream metrics in place. Contact LeanBreakthru now.