Practical Lean Accounting: A Proven System for Measuring and Managing the Lean Enterprise

by Brian Maskell and Bruce Baggaley


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Practical Lean Accounting: A Proven System for Measuring and Managing the Lean Enterprisepresents a step-by-step method for transforming a manufacturing company’s financial functions to support lean manufacturing. As companies implement lean, the financial functions are often forgotten and not included. This can lead to lack of support from finance and hinder the lean effort.

The step-by-step method to transform the accounting system describes what must be done at each stage to support lean.  This is a practitioners’ book that provides a roadmap for transitioning into lean and how to deal with accounting and measurements systems that may be obstacles to success. The book itself can be read from cover to cover in the traditional manner.  However, the authors also provide a chapter titled “Lean Accounting Diagnostic” which asses a company’s progress with Lean Accounting. Based on this assessment, you can develop a plan to implement change.

A case study is presented throughout the book to illustrate the lean accounting transformation in all stages.  This continuing example covers all of the topics in the book which make the concepts easier to understand. The book also includes a CD-ROM which includes details charts, forms, diagrams, and templates of the formats discussed in the book.

The main topic of the book deals with accounting; however, there is also significant discussion on how to manage perceptions, implementation progress and financial processes to establish lean operations. This additional discussion provides a more holistic approach to effectively implement lean accounting rather than outlining steps. The practical implementation strategy is applicable to lean accounting and all lean business practices.

Practical Lean Accounting is easy to read with a clearly presented methodology. It is well-written and comprehensive. The continuing case study illustrates the concepts clearly.

As you can see from the listing of chapters, Practical Lean Accounting is very comprehensive.  The chapters of Practical Lean Accounting include:

Chapter 1: Why is Lean Accounting Important?
Chapter 2: Maturity Path to Lean Accounting
Chapter 3: Cell Performance Measurement
Chapter 4: Financial Benefits of Lean Manufacturing
Chapter 5: Eliminating Financial Transactions
Chapter 6: Lean Financial Accounting
Chapter 7: Managing by Value Stream
Chapter 8: Value Stream Performance Measurements
Chapter 9: Value Stream Costing
Chapter 10: Using the Box Score
Chapter 11: Calculating Product Costs -- Features and Characteristics
Chapter 12: Eliminating More Wasteful Transactions
Chapter 13: Sales, Operational, and Financial Planning
Chapter 14: Lean Financial Accounting II
Chapter 15: The Lean Enterprise
Chapter 16: Target Costing
Chapter 17: Expanding Value Streams Outside Our Four Walls
Chapter 18: The Lean Accounting Diagnostic
Chapter 19: Performance Measurement Linkage Chart
Chapter 20: Transaction Elimination Maturity Path Table
Chapter 21: Value Stream Cost Analysis
Chapter 22: Value Stream Mapping