Hear how the operational strategy proven to be most effective in achieving world-class performance levels is lean. Learn how accounting can be a major obstacle to an effective lean conversion and how it must become a major contributor in the lean journey.
Accountants typically do not understand lean. Operations’ professionals typically achieve great gains but are surprised their efforts are met with a yawn in accounting as there is little evidence of improved results. Since accounting has its own language, a significant disconnect develops between the functions. Accounting metrics promote non-lean behavior creating another potential obstacle to a successful lean journey. Gain insights into how manufacturing must understand why efforts at improving flow, reducing inventory, improving customer service and creating capacity will potentially lower earnings. Discover why it is imperative that manufacturing and accounting work together to develop new metrics and ‘plain English’ financial reporting. Learn what can be done to eliminate the disconnect between accounting and operations, and:
- Why shop floor improvements will likely be invisible to accounting
- Why current metrics will not illustrate lean improvements
- What manufacturing practitioners can do to create an alliance with accounting
- Why your company’s current cost management system likely promotes non-lean behavior
- What organizational and cultural changes need to be made to have a successful journey.
Barry-Wehmiller is a 130 year-old St. Louis based global specialty machinery manufacturer with approx. $2.4 billion in revenue and 11,000 associates. The company has a broad line of products serving a variety of blue chip customers in the corrugated, food, beverage, pharmaceutical, tissue and consumer products industries. The company has achieved compounded revenue growth of 18% for the past 26 years and average shareholder appreciation of 15% since 1998.
Jerry Solomon has held CFO and VP of operations positions at a number of companies. He led lean transformations achieving dramatic improvements in inventory turns, lead-times, customer service, income and cash flow. He has authored three books, two of which won the prestigious Shingo Award: “Who's Counting?” and “Accounting for World Class Operations,” as well as “Leading Lean.” Solomon was the Maryland Lean Leader of the Year in 2013. He is a founding thought leader in lean accounting and has been teaching and practicing it for three decades. He was a long time board member of the Maryland World Class Consortia, is an AME examiner and is a Shingo Prize Research examiner.