Traditional accounting systems have long been a barrier to lean manufacturing implementations, especially at large companies. Pull manufacturing methods can throw many core accounting concepts on their ear, which can lead to difficulties in recognizing the achievements of lean. For example, inventory is no longer an asset… it is a liability.
The push to recognize new lean-friendly accounting methods is starting to gain critical mass. Several of the leaders in the field have come together to create the first Lean Accounting Summit, to be held in late September in Dearborn, Michigan. The objective of this summit is to develop a common understanding of what must take place in firms to spark the transition to lean accounting methods.
An impressive list of speakers has been recruited for this first Summit.
- Larry Albert, Director of Lean Financial Systems at Parker Hannifin
- Bruce Baggaley, partner at BMA, one of the premier lean accounting consulting groups
- Norman Bodek, author of the Shingo Prize winning book, Kaikaku: The Power and Magic of Lean
- Rich Cassada, division controller for Parker Hannifin
- John Cleveland, VP of IRN, Inc.
- David Cochran, founder of System Design LLC
- Jean Cunningham, CFO of Marshfield DoorSystems
- Mark DeLuzio, President of Lean Horizons Consulting
- Orrie Fiume, former VP-Finance for The Wiremold Company (featured in the Shingo Prize winning book, Better Thinking, Better Results)
- Jamie Flinchbaugh, partner of The Lean Learning Center
- Larry Grasso, associate professor of accounting at Central Connecticut State University
- H. Thomas Johnson, professor of business administration at Portland State University
- Brian Maskell, founder of BMA, Inc.
- C.J. McNair, professor of accounting at the U.S. Coast Guard Academy
- Mike Rother, noted author and teacher at the University of Michigan and the Lean Management Institute
- Jerrold Solomon, author of the Shingo Prize winning book, Who’s Counting? A Lean Accounting Business Novel
If you are in the midst of a lean transformation, you are probably starting to realize the financial issues involved. This Summit is looking to be a great milestone on the path to changing traditional financial accounting.