TMCnet News
Lean Accounting for Manufacturers Book Features Chapter by Manufacturing Journalist TR CutlerManufacturing Journalist, Thomas R. Cutler authored an important chapter in the new book, Lean Accounting for Manufacturers – A Tool for Lean Transformation (ISBN #: 978-81-314-2491-9). Cutler profiles the need to keep score through lean accounting. Manufacturers determine the operational elements in the value stream to track. Those elements are shown in the top half of the scorecard; in the bottom half of the scorecard, financial performance is show. This includes common elements, such as sales elements per employee, inventory turns, variable margin, and gross margin. The editors of the book, published by The Icfai University Press, are Apana Bellus and S. Vaijayalakshmi. In Chapter 12, Cutler says, “Lean accounting cost management provides a fresh way to look at accounting for operations in manufacturing companies. Lean cost management provides the tools that help staff to understand the changing physical operations in the plant. Traditional accounting is not spoken by the staff of a shop floor…they have to use the information to improve. Accounting information must be translated and should be easy to understand, actionable, and timely.” Operational items are displayed on the top of the scorecard because it where people have to focus. If the operational scorecard is improved, the financial scorecard will also improve. To test the efficacy of the operational parameters, improvements are made on the operational side that does not improve the financial picture were the wrong operational parameters utilized. About TR Cutler, Inc.: TR Cutler, Inc. (www.trcutlerinc.com) was founded by Thomas R. Cutler a decade ago. Cutler maintains extraordinary relationships with clients, journalists, editors, trendsetters, and key business leaders worldwide and has become a key resource for those writing about the manufacturing sector. Cutler founded the Manufacturing Media Consortium™ in the 1999. This extraordinary group of more than 3500 journalists worldwide is writing about trends, data, case studies, profiles, and features in the manufacturing and industrial sector. Cutler has worked with thousands of media outlets to expand manufacturing media coverage. Cutler has authored more than 2,500 articles for a wide range of manufacturing periodicals, industrial publications, and business journals including most of the leading monthly trade publications. TR Cutler, Inc. recently launched a new professional coaching system for manufacturers worldwide named C.E.O.™ or Continuous Experiential Optimization. TR Cutler, Inc. www.trcutlerinc.com Thomas Cutler [email protected] 888-902-0300 As a community-building service, TMCnet allows user submitted content which is not always proofed by TMCnet editors. If you feel this entry is of inferior quality or wish to report it for some reason, please forward the URL to "webedit [AT] tmcnet [DOT] com" with your comments. |