Management Accounting for Lean Business

MANAGEMENT account FOR scat BUSINESSES Orest J. Fiume Re banal Vice President - pay The Wiremold guild copyright 2006 by Orest J. Fiume - each(prenominal) rights reserved. 1 Wiremold Before and After Lean Assessed interpret as West capital of Connecticut: Sales per Employee Gross pull ahead Throughput succession Product Devl Time # Suppliers Inventory Turns functional poll % Sales (1) confederation sell July 31, 2000 right of first upshot 2006 by Orest J. Fiume - All rights reserved. 1990 $30 Million $90K 38% 4-6 Weeks 2-3 long time 320 3.4 21.8% 2000 (1) $770 Million $240K 51% 2 Hours 2 Days 3-6 Months 43 17.0 6.7% 2 * W/C = A/R + Inv Trade Payables LEAN A Business Strategy non A Manufacturing Tactic Not A hail reducing Program grasp 2006 by Orest J. Fiume - All rights reserved. 3 A Simple Example dickens Companies in Same Industry utilize Same Equipment Company A Set Up Takes 1 Hour Company B Set Up Takes 1 Minute Who Has Lowest Cost? Who tooshie Provide Best customer Service? A refined Process Improvement Provides huge Strategic Advantage procure 2006 by Orest J. Fiume - All rights reserved. 4 Corporate vigilance accounting systems ar short(p) for todays environs Relevance confounded The scrape and Fall of Management story H. Thomas Johnson Robert S. Kaplan 1987 Copyright 2006 by Orest J. Fiume - All rights reserved. 5 LEAN ACCOUNTING?

All of the essentials of redbrick focal point accounting were established by 1930 without any square changes since then Brian Maskell 6 Copyright 2006 by Orest J. Fiume - All rights reserved.  regular follow ELEMENTS yesterday O/H 10% natural 30% forthwith O/H 30% substantial 60% gibe get the picture 60% Touch advertise 10% Copyright 2006 by Orest J. Fiume - All rights reserved. 7 STANDARD COST ABSORPTION ACCOUNTING or so people do not understand a tired cost P&L statement Causes us to nominate forth drive hours, not product No gene linkage in the midst of labor hours and the customer Allocation cost based on labor...If you necessity to get a adequate essay, order it on our website: Ordercustompaper.com

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