The Conflicted Middle: Lean AccountingKevin Kohls
Level of TOC knowledge acquired:Introductory
Designed for:Business owners, Executives, Leaders, Managers, Academics and Students
Topics:Finance and Measurements
Format:Download and Paperback
- A plant trying to improve efficiency.
- A team struggling with an outsourcing decision.
- Make effective
- Move the company
towards their higher purpose
- Support new
- Have or support
Key points for Lean Accounting
- The Cost Accounting process that worked with the paradigm of Mass Production is no longer an optimal solution
- Lean Accounting, with it’s emphasis on Throughput Dollars and Pull, oﬀers a better solution for today’s every-changing “Precision” market
- Profitability decisions must replace Cost decisions
- Measures must move away from local optimization to system profitability as part of the VSM process
- Lean efforts must move away from measuring effort and check lists to measuring progress and profits
- Challenge Executives to understand Lean Accounting and the financial impact of their decisions
The ability for this type of analysis to generate improved profitability is key to the success of any company. Surprisingly, most people performing net profit calculations generate a wide range of wrong results, creating internal conflict and indecision. This presentation will focus on the basics of financial decision making that is summarized from Kevin's book: The Conflicted Middle—Lean Accounting.