LMC106 Accounting & Supply Chain Issues for the Lean Enterprise

Cost accounting for lean enterprises can be a tricky business. Students will explore how to implement value stream costing that is synchronous with lean manufacturing operations. Class time will also be spent discussing how standard cost accounting and traditional performance measures will not work in a lean plant, because they were designed to support manufacturing in large batches to achieve economies of scale.

Students will discover that in a lean environment, dramatically reduced inventories and lead times help to simplify inventory control and scheduling. Examples of study topics include:

• using value stream costs to make decisions and value inventory

• how to develop an implementation plan

• how to develop a “Starter Set” of measures for cell level, value stream level, and plant or company level

• how measures link to strategies and goals

• sharpening linkages, by defining critical success factors

Prerequisite: LMC105

Hours: 14.00