Lean Accounting Blogs

Why a Lean Quoting Process – Part 3

This is an excerpt from Ed Grinde's new book Leveraging Lean with Lean Quoting, now available on amazon.com. This is ...
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Why a Lean Quoting Process – Part 2

This is an excerpt from Ed Grinde's new book Leveraging Lean with Lean Quoting, now available on amazon.com. In my ...
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Why a Lean Quoting Process – Part 1

This is an excerpt from Ed Grinde's new book Leveraging Lean with Lean Quoting, now available on amazon.com. Have you ...
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Value stream management in emergency management

NICK KATKO, RICCARDO PAVANATO, GIANANDREA CAPO This free article appeared in the Harvard Business Review – Italy as part of ...
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Myth-Busting: Time Drives Costs

A few years ago I was working with a software company its lean transformation. During a training session someone made ...
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The Lowdown on Lean Accounting Interview

Here is a 35 minute interview I did for the Kaplan's Financial Management Network, which answers the basic questions about ...
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An Accountant’s Guide to Understanding Lean Accounting

I think one of the difficulties accountants face in understanding Lean Accounting is because we are trained to be “doers” ...
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Lean Accounting and Inventory Reduction

One of the most critical responsibilities accounting must assume, in a lean manufacturing company using a standard costing system, is ...
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Lean Accounting: Aligning Financial Management Practices

Lean companies organize their entire operations around value streams. The simplest definition of a value stream is all of the ...
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Lean Accounting: Alignment of Financial Statements

External financial statements must comply with financial accounting regulations, which often times results in a disconnect between operational activities and ...
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Lean Accounting: Aligning Performance Measurements

Lean companies recognize that optimization of the entire value stream flow is the primary goal of lean operating practices, tools ...
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How Lean Accounting aligns Lean with the accounting function

Accounting professionals are trained to be “doers” of accounting. Accounting training and education is about how to perform accounting tasks, ...
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Lean Accounting: Aligning the Lean Organization

Lean is first and foremost a business strategy based on 5 principles: creating customer value; organizing the business around its ...
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Material & Machine Cost Reduction (Part 3 of 3)

In the first cost reduction blog I explained cost reduction is lean organizations is different than traditional cost reduction practices ...
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Labor Cost Reduction (Part 2 of 3)

In the previous blog I explained cost reduction in lean organizations is different than traditional cost reduction practices because of ...
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Cost Reduction in Lean Organizations Part 1 of 3

Does lean reduce costs? – Yes! Tiiachi Ohno stated this very clearly: “costs do not exist to be calculated, they ...
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The Fundamentals of Value Stream Costing – Part 3 of 3

Shared Value Stream Costs Shared value stream costs exist because resources or consumption of goods & services may be shared ...
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The Fundamentals of Value Stream Costing – Part 2 of 3

Value Stream Costing Categories In value stream costing, we like to categorize value stream costs either as direct costs; shared ...
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The Fundamentals of Value Stream Costing – Part 1 of 3

Lean is a multi-faceted business strategy, with a primary focus on employees and learning. Through the use of various lean ...
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Lean Financial Management: Production Cost Analysis

The purpose of a value stream income statement is to analyze current value stream costs compared to current value stream ...
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Lean Financial Management: Material Cost Analysis

In the world of Lean Accounting, you will hear that a value stream income statement needs to show “actual material ...
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Lean Decision Making Framework Guidelines

Lean Decision Making Framework: General Guidelines In this blog, I’d like to explain 3 general guidelines accounting should follow for ...
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Removing Standard Costs from the Income Statement

Creating value stream income statements is the second part of a lean decision making framework that is not based on ...
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Removing Standard Costing from Financial Analysis

Using standard product costs in business decision-making works well in traditional manufacturing companies, because standard costing systems were designed for ...
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Lean Accounting & Inventory Reduction

One of the most critical responsibilities accounting must assume, in a lean manufacturing company using a standard costing system, is ...
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Lean Accounting & Standard Costing Variances

A standard costing system generates rate & volume variances by design. Standards are entered into the system, actual is reported ...
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Lean Accounting and Standard Costing: An Introduction

If you are in the accounting department in a lean manufacturing company, and your company uses a standard costing system, ...
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Lean Accounting and Generally Accepted Accounting Principles

In the context of applying Lean Accounting in manufacturing companies, there have been some arguments that Lean Accounting practices do ...
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A Better Way to Understand Product Profitability

Many companies calculate product profitability by subtracting a Standard Cost from the Price and calling it a Margin. But this ...
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Using Value Stream Costing for Root Cause Analysis

Value Stream Costing (VSC) is often misunderstood when it’s introduced into a business. First reactions to VSC often are based ...
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Time for Leadership – How Standard Costs Impact Company Behavior

There are many things wrong with using standard costing in an Lean company, but perhaps the most dangerous is when ...
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Lean Accounting in the Defense Environment by Vince Trnka

Brian Maskell writes:  This is another in our series of “guest” blogs. I first met Vince Trnka at the University ...
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Capacity Has Value – Part 3

In my last couple of blogs I proposed a new way the analyze capacity in a lean company, and gave ...
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Capacity Has Value – Part 2

In my last blog (here’s the link in case you missed it: https://maskell.com/?p=637 )   I proposed a new way the ...
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Untangling Complexity with Lean Accounting by Eldad Coppens

 First, a note from Brian Maskell:     Eldad Coppens is the CFO of Qfix.  Mr. Coppens  holds an MBA from the ...
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Capacity Has Value – Part 1

In manufacturing companies, the term “capacity” typically refers to the aggregate production capabilities of your factory.  It’s a bit like ...
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It’s About Spending, Not Costs – Part 4

Continuing my discussion about what I call “Lean Cost Management:”  I’ve been making the case for a Lean Cost Management ...
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It’s About Spending, Not Costs – Part 3

Continuing my discussion about Lean Cost Management: last blog, I made the case for a Lean Cost Management System vs ...
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It’s About Spending, Not Costs – Part 2

Last blog, I laid out my CFO experience (and probably yours) using what I’ll call “traditional” cost management methods.    In ...
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It’s About Spending, Not Costs – Part 1

During my days as a working CFO, my #1 job was financial review and analysis. I had to explain my ...
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Performance Measurements #2

Last time I blogged about the differences we find between traditional and lean focused performance measurements.  I summed up my ...
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Performance Measurements #1

In some recent blogs, I’ve been writing about some of the unique attributes of the CFO in lean companies – ...
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The Real Cost of Quality

A few weeks ago I participated in an online discussion about the Cost of Quality. The person initiating the discussion ...
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Lean Accounting and GAAP – Part 3

Relevance and reliability are the primary qualities the qualitative characteristics of accounting information that distinguishes better (more useful) information from ...
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Lean Accounting and GAAP – Part 2

Relevance and reliability are the primary qualities the qualitative characteristics of accounting information that distinguishes better (more useful) information from ...
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Lean Accounting & GAAP – Part 1

The FASB in Concepts Statement No. 2 identifies the qualitative characteristics of accounting information that distinguishes better (more useful) information ...
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How Standard Costs Impact Company Behavior

There are many things wrong with standard costing, but perhaps the most dangerous is when standard costing begins to drive ...
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