Lean Cost Management

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Accounting for Lean by Establishing Flow
By James Huntzinger
Hardcover, 6×9, 336 pages
ISBN: 978-1-932159-51-6
May 2007

ISBN: 978-1-932159-51-6 Categories: , ,


Obtaining and developing useful accounting information is required of any manufacturer to disclose information for both internal and external purposes. However, today’s accounting systems are inadequate to provide the informational support required to meet these objectives. This book is focused specifically on accounting information for internal purposes and reveals the failure of traditional cost and managerial accounting methods using both a current and historical context.

Lean Cost Management demonstrates the importance of the relationship between the physical Lean enterprise and accounting for continued success. It offers a combination of principles, philosophies, and technical attributes for a transition to a Lean enterprise and the role cost management plays in this new enterprise. It is a must read for accountants, engineers, and operational, business, and engineering managers.

Key Features

  • Applies both philosophical and practical applications of superior cost management into the manufacturing enterprise and that a complete change in thinking, physical operations and methods are needed for a successful transformation
  • Includes a working model of a production factors spreadsheet for tracking value stream costs
  • Argues that managerial-cost accounting truly should be about designing, executing, and improving the business system
  • Offers 100 years of knowledge and insight, from the fathers of the industrial revolution to today’s current experts, on Lean accounting and the Lean enterprise
  • Illustrates the techniques, principles, and philosophies developed by the architects of Toyota’s very successful North American operational accounting system

About the author(s)

Jim Huntzinger has more than 19 years experience developing Lean enterprises. He operates a manufacturing research firm and also is the President of the Lean Accounting Summit and TWI Summit. He has broad experience in Lean implementation within machining, assembly, and fabrication for a wide range of companies and products. Jim graduated from Purdue University with a B.S. in Mechanical Engineering Technology and received a M.S. in Engineering Management from the Milwaukee School of Engineering.

Table of Contents

Chapter 1: Accounting: Where We are and Where We Must Go 
Chapter 2: Why Traditional Accounting Methods fail
Chapter 3: Toyota’s Success: Profit Beyond Measure
Chapter 4: Execution
Chapter 5: Alexander Hamilton Church: His Cost Management System
Chapter 6: The Focus Factory
Chapter 7: Church and Excess Capacity 
Chapter 8: The Physical Operation 
Chapter 9: Lean Measurements: Measuring the Business
Chapter 10: Designing for the Lean Enterprise: Right-Designing
Chapter 11: Lean Creates Lean Cost Management
Chapter 12: Teamwork 
Chapter 13: System Evolution 
Chapter 14: Transactions and Lean 
Chapter 15: Lean: Like a Gear Train
Chapter 16: Where is ABC?
Chapter 17: Production Factors: Church’s Method Applied
Chapter 18: A Summary of Thought: Lean Cost Management
Chapter 19: How to Transform to Lean Cost Management
Chapter 20: Conclusion