American industry must erase lean accounting before it destroys lean management. Lean accounting experts note that traditional accounting impedes efforts to adopt Toyota's style of management, commonly known as "lean" management. They point out that traditional financial systems for costing, inventory valuation, and performance assessment promote delay and discontinuity in operations, rather than flow and short lead times. Furthermore, they explain that traditional accounting does not disclose the potential financial benefits of adopting lean practices, simply because it does not show directly the cost savings and financial opportunities that might arise from disposing of or employing the resources that a successful lean initiative makes redundant.
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