243 pages | 33 B/W Illus.
The first edition of Brian Maskell’s now classic work proved that when given the chance, accountants would prefer not to serve out their working days as number crunching automatons. With its energetic tone and common sense approach, the book inspired numbers people at all levels to become true allies in their companies’ lean revolutions. It encouraged new directions for both management and financial accounting, and helped provide impetus for the lean accounting movement that continues to find adherents in companies small and large today.
With the second edition of Making the Numbers Count: The Accountant as Change Agent on the World-Class Team, Maskell once again shows that the accountant’s first responsibility during a lean implementation is not to simply read the conventional bottom-line profit-and-loss results, but measure and reflect the processes that influence the bottom line. Once released from the chains of the ledger, the accountant is then free to establish performance measures that make a difference, empower others throughout the company to create customer value, eliminate waste, improve processes, and participate in a truly lean organization that is flexible and responsive enough to function optimally in turbulent and unpredictable times.
In these pages, Maskell provides the rationale, approaches, and tools needed to embrace a companywide allegiance to lean principles and practices. The book is updated throughout to reflect recent advances. Notably, it eliminates activity-based costing and management (ABC/M) in favor of the much more expedient value-stream accounting methods that have been tried and tested in diverse companies over the last ten years.
Like lean itself, this book will teach you to throw out what’s wasteful and improve upon that which has value. In this way, it turns accountants who once merely followed into powerful leading change agents.
The Proactive Accountant
Manufacturing in the Twenty-First Century
Criticism of Accountants and Controllers
The Proactive Accountant
Attributes of a World-Class Management Accountant
Tools and Techniques
The Role of the Management Accountant
Shortcomings of Traditional Accounting MethodsHistory of Management Accounting
Problems with Management Accounting
Lack of Relevance
Incompatibility with Lean Principles
Inappropriate Links to the Financial Accounts
Lean ManufacturingWhat Is Real Manufacturing?
The Five Critical Issues of Lean Manufacturing
Issue 1: Quality
Issue 2: Just-in-Time Manufacturing
Issue 3: World-Class People
Issue 4: Flexibility
Issue 5: Value to the Customer
Simplification of Accounting SystemsAspects of Traditional Accounting Systems
Why Are Complex Systems Needed?
The Lean Manufacturer
New Accounting Goals
A Four-Stage Approach to Simplification
How Does Value-Stream Accounting Work?
Plain-English Income Statements
Financial Benefits of Lean Improvement
Value-Added ManagementWhat Is a Process?
Process Improvement and Reengineering
Performance MeasurementCharacteristics of the New Performance Measures
Examples of New Performance Measures at Work
Implementing New Performance Measurements
A New Approach to Product DesignWhat Is Wrong with the Traditional Design Approach?
Quality Function Deployment
Variety Effectiveness Analysis
Implementing the New Approach to Accounting
Making the Changes
Implementing the Accounting Changes
What’s an Accountant to Do?
Interlude: Accounting Is Boring, but Controllership Is Not
Interlude: Bean Counters No More
South Central Bell
Automatic Feed Company
Accounting and Measurement Questionnaire
Each chapter concludes with a Summary & Questions