The Lean Management philosophy is based on the idea that companies should set their strategies according to what customers really value, systematically banishing waste both within the firm and along the supply chain. Many companies when implementing Lean Management complain that traditional Management Accounting Systems are unable to support these kinds of projects. At best, they are perceived as bureaucratic tasks, and at worst, they are considered a key constraint to both the acceptance and success of lean projects. The failure of these traditional Management Accounting tools and techniques has led to management consultancies developing a range of Lean Accounting approaches that are nevertheless not entirely satisfactory either. In particular, they do not support the analysis of the expected results of lean projects, which are crucial in obtaining top management commitment. Moreover, they still focus on the short term and on cost dimensions while neglecting the value creation potential of lean projects. Thus, this paper develops an innovative Lean Accounting model based on the Strategic Cost Management framework, more aligned to the specific needs of lean environments. In detail, this model is based on two main goals: (1) exploring the lean performance potential, at the planning and commitment stages of a lean transformation; (2) controlling lean management effects in terms of cost reduction and value creation, at the implementation and consolidation stages of an ongoing lean process.

Management Accounting in a Lean Environment

SILVI, RICCARDO;BARTOLINI, MONICA;VISANI, FRANCO
2012

Abstract

The Lean Management philosophy is based on the idea that companies should set their strategies according to what customers really value, systematically banishing waste both within the firm and along the supply chain. Many companies when implementing Lean Management complain that traditional Management Accounting Systems are unable to support these kinds of projects. At best, they are perceived as bureaucratic tasks, and at worst, they are considered a key constraint to both the acceptance and success of lean projects. The failure of these traditional Management Accounting tools and techniques has led to management consultancies developing a range of Lean Accounting approaches that are nevertheless not entirely satisfactory either. In particular, they do not support the analysis of the expected results of lean projects, which are crucial in obtaining top management commitment. Moreover, they still focus on the short term and on cost dimensions while neglecting the value creation potential of lean projects. Thus, this paper develops an innovative Lean Accounting model based on the Strategic Cost Management framework, more aligned to the specific needs of lean environments. In detail, this model is based on two main goals: (1) exploring the lean performance potential, at the planning and commitment stages of a lean transformation; (2) controlling lean management effects in terms of cost reduction and value creation, at the implementation and consolidation stages of an ongoing lean process.
2012
Best Practices in Management Accounting
33
51
Silvi R.; Bartolini M.; Visani F.
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/112034
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