Tuesday, July 5, 2011

Lean Accounting - Who said accountants were dull?

Who would have thought that accounting could be so exciting? Just add Lean to anything and you can feel the excitement. Right?
So what does Lean add to accounting? How can you make accounting Lean?

The 5 part video series, starting below, gives a brief introduction to Lean Accounting, showcasing the main differences between traditional accounting and progressive lean accounting methods.

While describing traditional accounting as anti-lean, the narrator explains how it's outcome based rather than focused on the process.

Taking the labour efficiency measurement as an example, he describes how it motivates people to be more efficient, but in a non-lean fashion. You can improve your labour efficiency by batching big jobs together and creating more inventory.

That's right. Traditional accounting measurements encourage bloat. Inventory leads to better numbers!

The whole series flows well together. You could watch them all back to back, as one long video. Or individually, since each video runs about 9 minutes, a manageable little chunk of tv to insert into your lean training session.

It's almost like an expose on accounting. We learn what's wrong, but I would like to see a few more examples of the good kind of accounting, lean methods. It's easy to talk about measuring the entire value stream, but it's hard to visualize that without some examples.

I never thought I'd admit I voluntarily watched an accountant prattle on for 45 minutes. Everything you ever wanted to know about Lean Accounting. Here's the first episode: Introduction and Lean Performance Measurements.

The rest of the video series on youtube:
2. Value Stream Accounting
3. Decision Making without Product/Service Cost
4. Accounting Simplification & Transaction Elimination
5. Target Costing

I've added this post to my massive list of free Lean videos.