CPE Session 32: Sunday, August 5, 1:00 PM – 4:00 PM

Making Accounting Relevant to Lean Enterprises

(Accounting)

Description/Objectives:
Objectives: Provide a broad understanding of lean thinking, the benefits of lean accounting in lean enterprises, and guidelines for teaching lean accounting (LA) concepts in the classroom.

Workshop content will include:

• A background of lean manufacturing, including a description of the lean practices used in the Toyota Production System.
• An introduction to LA methods, the deficiencies of traditional standard costing in lean environments, and the need for accountants to become part of the "lean team" by preparing "plain English" financial statements and providing cell, value stream, and enterprise wide performance measures that help in decision making.
• Case studies of firms that have transitioned from traditional to LA methods, and the challenges of changing the accounting system due to lack of top management support, lack of understanding, resistance to change, elimination of standard costs and variance analysis, and concerns over satisfying external auditors.
• A discussion of educational objectives that provide students with an understanding of lean principles and how to appropriately account for lean initiatives, including sample syllabi and teaching resources.

Presenters:
Rosemary Fullerton, Utah State University
Frances A. Kennedy, Clemson University
C. J. McNair-Connolly, U.S. Coast Guard Academy
Gloria J. McVay, Winona State University

Note: CPE fields of study are in parentheses