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 to no evidence of improved results. Since accounting has its own language, a significant disconnect develops between the functions. Typical 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. Learn how manufacturing must explain this so accounting is not surprised when quarterly results are prepared. As long as operational improvements remain invisible on financial reports, accounting will be stymied in supporting operational improvements and manufacturing will be frustrated in knowing their efforts are not appreciated. 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.
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.
Donna Tremblay is the fluid control division controller at Parker Hannifin Corporation, a publicly traded Fortune 250 global leader in motion and control technologies with annual net sales of $11.4B and over 55,000 team members. She has over 20 years of finance and operations experience in manufacturing and distribution in multiple industries. Tremblay earned her MBA in finance from Clarkson University and a BBA in accounting from Siena College. She is a CPA, a CMA and a certified six sigma green belt.
Lori Jablonski has been an executive finance director at Integer for over 10 years. Integer is a $1.4B+ publicly traded company with 10k+ associates. She launched accounting for lean as a pilot in one facility, which has eliminated all standard costs (including materials), utilizes a Plain English Value Stream P&L reflecting incurred costs including an adjusting entry for inventory valuation at the plant level to convert to GAAP, relies on visual management systems with use of metrics for trending analyses, uses an incremental approach to quoting incremental business opportunities, and utilizes hoshin planning with some use of Linkage Charting. Jablonski has BS degrees in accounting and finance from Canisius College (Buffalo, NY) and an MBA from St. Bonaventure University (Olean, NY).