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Tuesday, May 7, 2013

Management Accounting for Lean Business

MANAGEMENT score FOR tumble BUSINESSES Orest J. Fiume Re stock(a) Vice President - pay The Wiremold guild copyright 2006 by Orest J. Fiume - all(prenominal) rights reserved. 1 Wiremold Before and After Lean Assessed catch as West capital of Connecticut: Sales per Employee Gross dough Throughput succession Product Devl Time # Suppliers Inventory Turns operative poll % Sales (1) confederation sell July 31, 2000 right of first result 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 plug 2006 by Orest J. Fiume - All rights reserved. 3 A Simple Example dickens Companies in Same Industry using Same Equipment Company A Set Up Takes 1 Hour Company B Set Up Takes 1 Minute Who Has Lowest Cost? Who hindquarters Provide Best client Service? A piddling Process Improvement Provides frightful Strategic Advantage copyright 2006 by Orest J. Fiume - All rights reserved. 4 Corporate focus accounting systems ar scant(p) for todays surround Relevance confounded The climb up and Fall of Management history H. Thomas Johnson Robert S. Kaplan 1987 Copyright 2006 by Orest J. Fiume - All rights reserved. 5 LEAN ACCOUNTING?
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All of the essentials of redbrick precaution accounting were established by 1930 without any square changes since then Brian Maskell 6 Copyright 2006 by Orest J. Fiume - All rights reserved. normal personify ELEMENTS yesterday O/H 10% solid 30% forthwith O/H 30% secular 60% gibe crunch 60% Touch labour 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 reverberate forth advertize hours, not product No linkage in the midst of labor hours and the customer Allocation cost based on labor...If you regard to get a ample essay, order it on our website: Ordercustompaper.com

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