The Lean CFO: Architect of the Lean Management Accounting System

Cover
Half Title
Title Page
Copyright Page
Table of Contents
Preface to the Second Edition
About the Author
1 The Lean Management Accounting System
2 Leading a Lean Management Accounting Transformation
	Become the Role Model
	Integrate Lean Management Accounting Into the Lean Strategy
	Use Lean Practices as the Foundation for the Transformation
		Customer Value
		Continuous Improvement
		Use PDCA
		Focus On Thinking
		Start With Pilots
	Wrap Up: You Are the Head Coach
3 Lean Is the Strategy
	Introduction
	Lean Is the Strategy
		Customer Value
		A Lean Strategy Is Principle-Based
	Value Stream Organization
	Continuous Improvement = People Solving Problems
		No Standard
		Troubleshooting
		Gap From Standard
		Improving the Standard
	Lean Operating Practices
	The Economics of Lean
	Wrap Up – Lean Is the Strategy
4 Lean Performance Measurements
	Lean Performance Measurement Cycles
	What to Measure
	Daily Or Cell Lean Performance Measurements
		Schedule Attainment
		Quality
		Cost
		Flow
		Safety
		Respect for People
	Weekly Or Value Stream Lean Performance Measurements
		Delivery
		Quality
		Lead Time
		Flow
		Productivity
		Cost
		Safety and Respect for People
	Monthly Or Company Lean Performance Measurements
	The Linkage Chart Process
		Develop the Linkage Chart
		Pilot the Measurements
		Review and Adjust the Measurements
		Linkage Chart Development Plan
	Wrap Up – Lean Performance Measurements
5 Measuring Capacity
	Time Is Money
	The Economics of Lean
	Types of Activities
		Value Added Activities
		Non-Value Added But Necessary Activities
		Non-Value Added and Wasteful Activities
	Process Analysis and Data Collection
	Data Collection Methods
		Data Collection On Process Activities
		Data Collection On Position Activities
			Example: Measuring Capacity By Process Activities
			Example: Measuring Capacity By Position Activities
	Frequency of Measuring Capacity
	Wrap Up: Time Is Money
6 Value Stream Income Statements
	GAAP = GAAH!
	Purpose of Value Stream Income Statements
	Value Streams Are Profit Centers
	Value Stream Income Statement Practices
		Practice 1: Simple Format
		Practice 2: Report Actual
		Practice 3: Properly Define Variable and Fixed Costs
		Practice 4: Avoid Cost Allocations
	Designing a Value Stream Income Statement
		Sales
		Variable Costs
		Contribution Margin
		Fixed Costs
		Value Stream Operating Margin
		Shared Costs
		Value Stream Operating Profit
	Designing a Company Value Stream Income Statement
	Wrap Up
7 Value Stream Management
	Introduction
	Planning the Value Stream – Strategy Deployment
		The Plan Step
		The Do Step
		The Check Step – Catchball
		The Adjust Step
	Improving the Value Stream – Continuous Improvement
		Planning the Improvements
		Do – Conducting Kaizen Events
		Check and Adjust – the Weekly Value Stream Team Meeting
	Controlling – Daily Lean Management
		Plan and Do – the Daily Schedule and Executing the Work
		Check and Adjust – the Daily Huddle
	Managing – Accounting’s Role in Value Stream Management
	Wrap Up: Value Stream Management
8 Lean Decision Making
	Box Score Thinking
	Use the PDCA Process
	Increasing Capacity to Meet Demand
	Make Or Buy Decision
	Pricing and Quoting Decisions
	Lean Cost Management Decisions
		Labor Cost Management
		Machine Cost Management
		Material Cost Management
		Material Price
	Wrap Up: Lean Decision Making
9 Dealing With Standard Costing: Simplifying Standard Setting
	Introduction
	Standards Are Static, Lean Is Dynamic
	Simplifying Material Standard Setting
		Reducing the Number of Bills of Material
		Reducing the Number of Part Line Items
		Improving Quantity Per Assembly
		Improving Material Cost
	Simplifying Labor and Overhead Standard Setting
		Impact of Lean Practices On Routers and Rates
		Reduce Number of Labor and Overhead Rates
		Simplify Run Rates
		Reduce Number of Work Centers
		Strive for One Labor and One Overhead Rate
	Wrap Up – Simplify Standard Setting
10 Dealing With Standard Costing: Transaction Elimination
	ERP and the CFO
	Traditional Manufacturing and ERP
	Lean Manufacturing and ERP
	Reducing Work Order Transactions
		Stop Reporting Actual
		Begin Backflushing
		Reduce Router Steps
		Decrease Number of Work Orders
	Reducing Material Control Transactions
		Reducing Receiving Inspection Transactions
		Reducing Inventory Adjustments and Cycle Counting Transactions
	Wrap Up: Transaction Elimination
11 Dealing With Standard Costing: Lean Inventory Valuation
	Introduction
	GAAP and Inventory Valuation
	Lean Inventory Valuation and GAAP Compliance
	Lean Inventory Valuation of Material
	Lean Inventory Valuation of Actual Production Costs
		Average Production Costs
		Historical Margin
	Getting Started With Lean Inventory Valuation
	The Benefits of Lean Inventory Valuation
	Wrap Up: Lean Inventory Valuation
Appendix
Index