The LEAN Accountants

Time 2020-12-28 11:04:03

Web Name: The LEAN Accountants

WebSite: http://www.leanaccountants.com

ID:148808

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Many companies and organizations are continuing to look for ways to reduce their internal cost of operations and overhead. Implementing LEAN manufacturing principles has become a very important concept and one that may help improve overall efficiency of operations, directly impacting bottom line results. This blog is written for those organizations. As an owner of the Dale Carnegie Mid-Atlantic franchise, McKonly Asbury is able to offer an extension of services to our clients and friends of the firm, expanding our expertise in the areas of leadership, team building, and people development.To that end, Dale Carnegie is offering a complimentary webinar for manufacturers entitled “Communicating with Different Personality Styles” on Tuesday, June 16th from 2:00pm - 3:00pm. This webinar will review the four different communication styles outlined by behavioral psychologists, and help attendees identify your dominant style as well as communication styles in others. Understanding the different communication styles will allow attendees to use this knowledge to build collaboration within their organization. The American football season is full swing. The NFL is celebrating 100 years of this game of athletic and mental matchups. As an organization, the NFL is concerned with increasing its income by providing an entertainment product. To this end, each year it makes changes to its policies as they apply to players and clubs. They adjust in-game rules when defenses become too stifling, so that games are viewer-friendly and high-scoring. They investigate new technologies to upgrade equipment in ways that improve player safety. The League tweaks officiating practices based on perceived flaws or egregious errors from the previous season, to mixed results.With the agony and ecstasy of each week’s antics and heroics, I can’t help but dream about applying Lean principles to making the game better in general, and for my Seahawks in particular. At the moment I am doing some work with Total Productive Maintenance, or TPM, which deals with making plant operations and production systems more effective. Here are some thoughts on how to get the best out of an NFL franchise by applying TPM principles. Continue reading "How to Get the Most Out of Your NFL Franchise with TPM" Lean Production, as an approach to managing complex operations, was introduced more than 30 years ago. Yet, despite decades of Lean thinking and practice, the utter dominance of its industry by Toyota (the inspiration for lean), and the well-documented gains by those enterprises that have practiced lean in a high fidelity fashion, Lean is often viewed as a shop-floor skilled trade, to be assigned to subject matter experts in staff (not line) roles; and conducted through programs and initiatives rather than as fundamental to the means and methods of the firm.A key reason is that Lean in particular, and other methods of achieving outstanding operations more generally, are primarily taught as the practice of tools and techniques—and not as a complete, coherent system of thinking that addresses the strategic concerns of senior leadership. Why is it sometimes difficult to see the financial impact of successful continuous improvement efforts? If actions are inadequate to deliver results or if they are not sustain, it is not hard to see why. What if we can visit the process and see that the process is 30% more productive as result of kaizen activity, but the financial controller cannot see it? Below are five common mistakes that prevent us from seeing the financial impact of Lean efforts. Mistake #1: Not agreeing upfront on how to measure successThe starting point is to involve stakeholders and to agree upfront on how to measure success. The definition of success may not always be financial, but sooner or later it needs to be so. Sometimes there is a direct financial impact, other times it is an indirect benefit that requires further action to realize savings. All continuous improvement activity should be measurable in one or more of the macro categories of People, Safety, Quality, Delivery, Cash and Cost. Once the main problems areas have been agreed and defined in terms of KPIs as the company measures them, perform Lean diagnostic activity. Collect data, make analysis, calculate estimated savings. If a consultant or CI specialist does not know how to do these things, stop and get the education first. It is necessary to know where the financial controller or equivalent person will look for the results, and how that translates to Key Performance Indicators at the gemba level. It helps to have P L management experience, or at least basic familiarity with how to read balance sheets, income statements and cash flow statements. For a goal to be really relevant, it must tie to the broader purpose and goals of the entire organization. Your strategy is going to help drive that. Strategy consists of a desired future state and a definition of how you’re going to get there.You should break that strategy down into smaller interim goals on that path. Every goal that gets set in the organization should be linked to that broader element of your strategy. How do you do that?Take your vision and your mission. Look at where you’re going as an organization. Break that down into major themes over the course of the strategic planning period. Break each theme down into actions you’ll have to take to achieve it. Break each action down into subactions until you can set an individual goal for each. Continue reading "Setting Team and Employee Goals – Linking Goals to Strategy is Keys to Success" Picture this. A CEO says to his or her CFO: “Last month, our kaizen teams reported average productivity gains of 50 percent. Why can’t I see them in this month’s financial statements?”The CFO responds: “I don’t know. I’m beginning to suspect that this lean stuff isn’t real.”If I had a dollar for every time I have been told about conversations like this, I’d be rich. The exchange demonstrates that a lot of executives don’t fully understand what productivity gains are and are not. Oftentimes, accounting teams and systems focus on labor efficiency or the relationship of actual labor hours to standard labor hours. Penny pinchers want to think that the standards are correct, but this isn’t always the case. Continue reading "Lean Accounting: Recognizing and Realizing Productivity Gains as Profits" Let’s look beyond 2019 predictions. Are manufacturers’ looking a decade down the road? Here are five trends that need to be on their radar, not just over the next 12 months, but in the coming years.Global Virtual Workforce: Merging Extended Reality with the Internet Two million manufacturing jobs could go unfilled by 2025 due to the skills gap. On the horizon lies a solution to manufacturers’ skilled worker shortage: the merging of global interconnectivity with Extended Reality (XR), which will help companies locate STEM-educated employees. Within a decade companies will be able to tap skilled workers across the globe to design products, work with engineers, and operate and maintain U.S.-based machines and equipment – in effect, a worldwide workforce will staff globally connected virtual-actual shop floors. Manufacturing once again remained a hot topic in 2018 with a lot of reasons for optimism going into 2019. Specific areas have emerged to reveal the top 5 trends impacting manufacturing for 2019.Projections Predict GrowthManufacturing in the U.S. is successfully adapting to changes in customer needs and related shifts in the consumer marketplace, while still focusing on profit margins and revenue growth. Production in the U.S. is estimated to grow 2.8 percent from 2018-2021 (a faster increase than other segments of the general economy), and manufacturing continues to have an outsized influence on regional economies. Longstanding economic analysis has posited for every dollar invested in manufacturing, the result is $1.40 in additional economic activity. Continue reading "Top 5 Trends Redefining Manufacturing in 2019: New developments predict growth amid ongoing changes" As the economy evolves, technology advances and the workforce changes, individuals need to have the relevant skills, intellectual curiosity, the willingness to learn and adaptability for new-collar careers.IBM CEO Ginni Rometty has been calling for government and business leaders not to think in terms of white-collar or blue-collar jobs, but new-collar jobs instead. IBM plans to hire 25,000 new-collar employees by 2020. Rometty said she believed that these were jobs that may not require a traditional college degree. New-collar workers may have degrees, or they may have gained the necessary skills through vocational training. Continue reading "Manufacturing workforce trends: New collar jobs and apprenticeship programs" We can t find good help! This is a common refrain from various organizations with whom I have interacted over the past several years. Of course, this shouldn t be a surprise given the low unemployment rate. In fact, there have been approximately 400,000 open manufacturing jobs in the U.S. since 2012. Service organizations have also been struggling to find people to fill available positions. What can be done? Can Lean help with such a challenge beyond productivity improvements that can postpone the need to increase staffing? The answer is yes. First, let s describe the challenge a bit more.The ChallengeI often will ask people about the position or positions that they are in need of additional staffing. They often can describe the position, its responsibilities, and general skills required. However, when I ask about specific processes that the person is expected to perform, things get a bit, well let s just say hazy , or less defined. I point out that it will be difficult to find anyone capable to perform poorly defined processes. Of course, we ll train the person , is the common response. I then ask how they go about training. Most often, they describe a form of on-the-job training. We pair up the new hire with an experienced person, who will show them the ropes. Therein lie the problem and the challenge.

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LEAN Management techniques for Manufacturing Companies. Those looking to reduce waste, improve operational efficiency while driving management improvements through the concpets of the Toyota Way and Six Sigma. .

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