Lean Accounting and Accounting for Lean
Please contact Patricia Giavara ([email protected] or (802) 279-6103) if you’re interested in this workshop or have questions. We need to meet a minimum number of registrations by May 25 to ensure this training will take place. Also, attendees will need to bring their laptop (sharing is allowed). No discounts will be available for this training.
Traditional accounting and managerial methods were designed to support traditional, mass production manufacturing. Lean manufacturing principles and methods require a new set of performance measures and accounting information to support the more competitive Lean enterprise. For example, Lean manufacturing focuses on increasing customer value by reducing Lead time while improving quality, reducing cost, and improving cash flow. Lean manufacturing eliminates wastes such as “overproduction”; but traditional accounting would say to maximize machine hours (building work-in-process inventory) to absorb overhead. Traditional accounting and Lean methods are often at cross purposes.
This workshop is designed for both manufacturing leaders AND their financial counterparts to encourage a greater level of alignment between Lean operations and accounting. It is highly recommended that CEO’s, CFO’s, Controllers, Directors of Human Resources, Operations Managers and other leaders from companies committed to Lean transformation (and usually into their Lean journey) attend this workshop as a team.
Through exercises and case studies, the workshop will clearly illustrate why traditional cost management techniques are often at odds with Lean thinking and provide answers on how to develop a set of financial reports, including “Plain English” financial statements that allow everyone in the company to truly understand performance. Exercises will demonstrate how traditional transactional processing needs to be changed in lock-step with Lean changes occurring in manufacturing, and how a working partnership between operations and accounting supports an effective Lean transformation.
The workshop topics include:
- Application of Lean Principles in Accounting
- Shifting from a transactional to consultative role in Accounting
- Accounting for Lean
- Profit Model and capturing the value of Lean
- What is the problem with Standard Cost accounting
- Key elements of Plain English financials
- Case study example(s) before and after
- Outcome and Process
- Box Score
Participants will develop action plans to apply some part of what
they have learned to their businesses.
Read below what one attendee is saying about his experience during a past Lean Accounting session:
“I had the distinct pleasure to participate in VMEC’s sponsored Lean Accounting and Accounting for Lean workshop in 2012, when I was the General Manager and CFO of a wood products company. In my new role assisting wood products companies regionally, the concepts and practicality of Lean accounting continue to be relevant. Many companies focus their efforts on continuous improvement concepts in the production/flow of product; however accounting systems in many cases are not aligned. Many businesses are still focused on old standard costing and accounting systems, which are over-complicated and not applicable to operating a successful business today. I highly recommend participating in the upcoming Lean Accounting and Accounting for Lean workshop. Take what you learn and apply to your business!!”
– Dave Redmond, Director of the Wood Products Programs, Northern Forest Center
Instructor: Mike DeLuca is Principal and Owner of Torre Consulting. Mike is a featured speaker at conferences including the Lean Accounting Summit, the Catalysis Lean Healthcare Transformation Summit, where he serves as Lean Finance faculty, and conferences of the Beyond Budgeting Round Table (North America). Mike has his Master of Science in Finance degree from Seattle University, is a certified Lean Six Sigma Master Black Belt, and a Fellow of the Healthcare Financial Management Association (HFMA) In his consulting practice, Mike works with companies on lean strategic planning and deployment, value stream mapping and improvement, and cross-functional process improvement in finance and operational areas such as revenue cycle and supply chain. In partnership with clients, he has developed driver-based forecasting models and continuous adaptive financial planning processes.
Mike’s 25 years of experience include over 15 years of leadership experience in the corporate environment and a similar number of years of experience bringing Lean principles to life in department and organizational processes and culture. Prior to starting his consulting practice, Mike served as Executive Director of Finance at Group Health Cooperative in Seattle, WA. While at Group Health, he led the Lean transformation of his own department, evolved the role of Finance to meet the changing needs of a Lean organization, and co-led the Lean transformation of the budgeting process across the enterprise. As a department leader Mike has inspired and engaged staff, resulting in improvements to department culture and outcomes.
Payment: Please make check payable to “VMEC” and mail to PO Box 12, Randolph Center, VT 05061-0012. To pay by credit card (VISA, MC, AMEX), click here.