Lean Frontiers: Are they differences in getting middle management on board from getting executive management support?
Are there differences in getting middle management from executive management on board for 1) developing the lean enterprise and 2) direct engagement on their part? What are the differences, if any?
Posted on May 9, 2015
Archives by Tag 'accounting'
Orry Fiume

Orry Fiume: Rather than cost accounting, look out for cash improvement

By Orry Fiume, - Last updated: Tuesday, January 18, 2011
This is a question that has been asked in every Lean Accounting workshop that I have conducted over the past 10 years. Probably the single biggest reason why we can’t see the gains in the Profit Statement is because most companies still use full absorption standard cost accounting.  In this system any deviation from standard is treated as a variance. As we implement Lean we satisfy some of our current demand from existing inventories, resulting in improving inventory turns…which is a good thing.  However, since our people are not producing product, by design, that shows up in the financial statements as ...

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