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From the Lean Lexicon 5th Edition:

Lean Management Accounting:   Sometimes called Lean Accounting, it refers to the restructuring of management accounting and controls to accurately report the results of improvements that are continuously being made during a lean transformation. Because current accounting systems were mostly developed in the early 1900s to support large batch manufacturing, traditional accounting systems often send signals that encourage batch processing and silo decision-making.  Lean management accounting has these objectives:Provide accurate, timely, and understandable information to motivate the lean transformation throughout the organization, and for decision-making leading to increased customer value, growth, profitability, and cash flow.  Support the lean culture by providing information that is More »
Accounting and Finance - How Can We Help?
By: Mike De Luca | April 3, 2020
I’ve been thinking about what we as Lean Finance and Accounting practitioners can be doing during this time of “business-as-unusual” and wanted to offer a few ideas that I hope will generate thoughtful discussion, sharing and co-learning as a community. More »
Accounting for the Right Reasons
By: Jim Huntzinger | March 1, 2020
My first job after graduating from Purdue University was as a manufacturing engineer with the Japanese company, Aisin Seiki. Aisin U.  S.  A. was in the process of transplanting to North America to supply components to Toyota manufacturing operations in Fremont, California (NUMMI), Georgetown, Kentucky, and Cambridge, Ontario. The Georgetown assembly plant was not yet running production. More »
Accounting for the Lean Accounting Award
By: Chet Marchwinski | August 18, 2016
In this series, we talk to past winners of the Excellence in Lean Accounting Award to learn what impact the award and the scholarship it supports has had on the teaching and practice of accounting.    More »
How Intertape Polymer Group Used Pilots and Parallel Systems to Learn and Implement Lean Accounting
By: Nick Katko | July 14, 2021
IPG's director and VP of finance manufacturing share their disciplined strategy for adopting lean accounting and finance. More »
Getting Started with Lean Accounting
By: Mike De Luca and Nick Katko | June 16, 2021
Before your organization gets started with lean accounting, the accounting function must first expand its thinking beyond transactions and into practices. Here's how. More »
Embracing Standard Work in Lean Accounting: An Interview with Mark DeLuzio
By: Mike De Luca | May 20, 2021
How standard work catalyzes continuous improvement in lean accounting and finance -- and any other work area. More »
Insights and Advice from a Lean Accounting Leader
By: Mike De Luca | April 22, 2021
Why and how to get started integrating lean thinking and practice into accounting and finance at your organization. More »
Modeling ‘Respect for People’ in Accounting and Finance
By: Mike De Luca | March 18, 2021
How can Finance and Accounting professionals show respect to their coworkers and clients? In this Post, Lean Accounting Coach Mike De Luca compiles some insightful advice from lean thought leaders. More »
Understanding Customer Value: How Accounting Applies this Foundational Lean Concept to its Work
By: Mike De Luca and Nick Katko | February 18, 2021
Putting the entire customer experience first in thinking, not just the transaction, is the Lean Accountant's goal, asserts Nick Katko and Mike De Luca, More »
Implementing Lean Accounting in a Publicly Traded Company
By: Nick Katko | January 21, 2021
Learn how this multi-plant, multinational publicly traded company in the packaging industry embarked on its lean accounting transformation journey. Then, watch for more articles in this occasional ongoing series, which demonstrates how lean accounting can be rolled out in a larger, more complex organization. More »
How to Optimize the Use of Staff Skills and Time by Making Capacity Visible: An Example from Accounting
By: Mike De Luca | December 17, 2020
Learn how a Finance and Accounting team used lean thinking to make capacity visible, which, in turn, helped it better manage workload and deliverables, reduce individual work overburden, and improve the team’s ability to fully use their skills. More »
Lean Accounting is about Respect for People
By: Jerry Solomon | July 16, 2020
The author recalls his first experience in learning first-hand the importance of providing easily understandable information to the people who can and will make a difference; it was transformative. More »
An Accountant’s Guide to Understanding Lean Accounting
By: Nick Katko | May 12, 2020
I think one of the difficulties accountants face in understanding Lean Accounting is that we are trained to be “doers” of accounting. Our training and education is about how to perform accounting tasks and functions, from learning the basics of journal entries in Accounting 101 to how to close the month in the company we work at. We want to master how to execute, and the better we are at executing, the better accountants we are.  To understand Lean Accounting, accountants need to adjust their perspective from “doing” to “practicing.  ” And the first step to begin practicing Lean Accounting More »
By: Orry (Orest) Fiume | December 31, 2019
“Lean Accounting” has been around for about 30 years, yet its adoption has not been widespread. Is that true? More »
Lean Accounting Podcast from OSU MBOE
December 31, 2019
It's a common misconception that lean in accounting equates to merely a cost-cutting tool. In this podcast from the Ohio State University Master of Business Operational Excellence program (MBOE), LEI Chairman Jean Cunningham discusses a broader model of lean in accounting with Aravind Chandrasekaran, Academic Director of MBOE. Through improved decision-making and impact on the five different "levers" of financial outcomes, Cunningham discusses the impact of lean accounting on value creation. More »
WLEI: 23. Lean Accounting Panel Discussion with Art Byrne, Jean Cunningham, Jim Huntzinger, Nick Katko, and Mike DeLuca
By: Lean Enterprise Institute | November 18, 2019
Many lean thinkers find the traditional accounting reporting completely out of alignment with the new lean management system.   Part of PDCA is checking outcomes to help identify next steps, but if the financial language of business is not reliable to provide good information for evaluation and decision making, sustainment of good experiments is at risk.   Is there a better way? Yes, according to the five panelists on this week’s podcast.  Additional Articles:How lean accounting promotes lean in the organizationProfit and Cost At ToyotaCost Saving is Tired--Value Creation is Hot!Real Number bookThe Value Add Accountantbook More »
Lean Accounting Is Simpler, Faster, Cheaper, and More Accurate Than Traditional Management Accounting, so Why Don’t More Companies Use It?
July 31, 2019
Five thought leaders of the movement recently held a special conversation about what lean accounting is and isn’t, why it is vital to sustaining a culture of continuous improvement, how it relates to GAAP, and why it provides a truer picture of how your company is performing.   As long-time lean accounting practitioners, they also liberally share practical, real-world examples of how traditional accounting can mislead and misinform decision-makers. More »
Join us at the Lean Accounting & Management Summit
July 31, 2019
Increase your professional value while learning how lean accounting sustains a lean transformation. Register today for the Lean Accounting Summit, Sept 12-13, 2019. More »
How Accounting “Squirrels” Can Ferret Out Waste
By: Jean Cunningham | March 15, 2019
While other functions are busy as beavers looking for waste during a lean transformation, your accounting staff is like a squirrel with its head stuck in a yogurt cup. They only see the traditional work right in front of them instead of digging into data for buried “nuts” of waste, says Jean Cunningham, LEI’s new executive chairman. More »
How lean accounting promotes lean in the organization
By: Mike De Luca | January 31, 2018
Lean finance helps make upstream problems visible and provides consultative products and services to support the organization in increasing customer value.  In his book “Getting the Right Things Done,” Pascal Dennis writes, “When implementing strategy deployment , engage the Finance team early on. Too often this group is relegated to the lowly position of ‘bean counters,’ rather than its proper role: trusted advisor and business partner.  ” In my years of experience as a finance leader in a health-care organization, and more recently, as a lean consultant, I have seen firsthand how lean in the finance and accounting function can More »
Ask Art: What sets lean accounting apart from traditional accounting?
By: Art Byrne | November 15, 2016
"You can’t really become a lean enterprise without making the shift from traditional standard-cost accounting to lean (i.  e. plain English) accounting," writes Art Byrne. Read more to learn why a lean accounting department is crucial to a complete organizational transformation. More »
Students “Shocked” that Lean Accounting Isn’t More Widespread
By: Chet Marchwinski | October 19, 2016
Lean accounting seemed “so logical” to her students that they asked Professor Pencak, winner of a Lean Education Advancement Foundation scholarship, “Why isn’t everybody doing this?” More »
Lean Accounting Summit Impacts Dissertation
By: Chet Marchwinski | August 1, 2016
Since 2008, the Lean Enterprise Institute has sponsored the Excellence in Lean Accounting Award to fund scholarships helping pairs of students and professors attend the annual Lean Accounting Summit. In this series, we talk to past award winners to learn what impact the scholarship and award has had on the teaching and practice of accounting. More »
Lean Accounting’s Acceptance Makes Slow, Steady Headway in Academia
By: Marchwinski, Chet | September 6, 2013
Professor Gerald DeBusk, PhD, winner of an Excellence in Lean Accounting Award from the Lean Enterprise Institute, reflects on the progress -- or lack of it -- of lean concepts in academia. More »
Creating the Course and Tools for a Lean Accounting System
By: Chet Marchwinski | June 25, 2003
Case Studies; Charts, Graphs and Diagrams; Value-Stream Maps
A unit of Parker Hannifin used a financial kaizen and other lean accounting techniques to bridge the gaps between shop-floor improvements and traditional financial statements. More »
Lean Accounting
To sustain a lean transformation, top executive and financial managers must know how to transform routine accounting practices to a new system that not only is lean itself but also supports lean practices. More »
The Toyota Way of Dantotsu Radical Quality Improvement (Paperback)
By: Sadao Nomura | June 11, 2021
"A story of remarkable quality improvement inside the world's best quality manufacturer" -  John ShookIn Japanese, "dantotsu" means "extreme," "radical," or "unparalleled.  " In this book, Toyota veteran Sadao Nomura shares his decades of experience leading and supporting Toyota operations and tells the story of the dramatic improvement he and his team achieved at Toyota Logistics & Forklift (TL&F).    Although TL&F seemed to be performing well, insiders knew that, as the founding company of the Toyota group, it needed to do better, especially in the quality performance of its global subsidiary operations. But improvement would not be easy in a company that already prided More »
The Toyota Way of Dantotsu Radical Quality Improvement (Hardcover)
By: Sadao Nomura | June 11, 2021
People, Invention, and Radically Great Quality More »
Debunking the 'Time Drives Costs' Myth with Lean Financial Thinking
By: Nick Katko | November 19, 2020
Learn why you must stop allocating costs based on time--and how lean financial thinking and practice gives you a more accurate way to understand and track this important metric. More »
What Finance Teams Can Learn from the Lean Practice of ‘Go See, Ask Why, Show Respect’ - Part 1
By: Mike De Luca | October 15, 2020
Join a "lean accounting" coach as he recounts several gemba walks with Finance and Accounting leaders and shares their "ah-ha" reaction. More »
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