Abstract
Lean is dominating management philosophy, but the management accounting techniques that best supports this is still not fully understood. Especially how Lean fits traditional budget variance analysis, which is a main theme of every management accounting textbook. I have studied three Scandinavian excellent Lean performing companies and their development of budget variance analysis techniques. Based on these empirical findings techniques are presented to calculate cost and cost variances in the Lean companies. First of all, a cost variance is developed to calculate the Lean cost benefits within the budget period by using master budget standards and updated standards. The variance between them represents systematic Lean cost improvements. Secondly, an additional cost variance calculation technique is introduced to assess improved and systematic cost variances across multiple budget periods. This is needed in Lean as the benefits are often created over multiple periods and not just within one budget period. Traditional cost variance techniques are not able to trace these effects. Moreover, Time-driven ABC is adapted to fit the measurement of Lean improvement outside manufacturing and facilitate the requirements of Lean companies. In general all these developments should enhance the measurement of cost improvements on both direct costs and indirect costs made by implementing Lean. The adaptions and techniques presented can be used by other Lean companies, because they are highly applicable and can easily be replicated. I have formalized the findings to make the accessible for researchers and practitioners.
Originalsprog | Engelsk |
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Titel | POMS 2015 PROCEEDINGS : Production and Operations Management Annual conference 2015 |
Forlag | Production and Operations Management Society |
Publikationsdato | 2015 |
ISBN (Elektronisk) | 0-692-40830-4, 0-692-40830-8 |
Status | Udgivet - 2015 |
Begivenhed | POMS 26th Annual Conference – Washington D.C, USA – 8-11. May 2015 - Washington D.C., USA Varighed: 8 maj 2015 → 11 maj 2015 |
Konference
Konference | POMS 26th Annual Conference – Washington D.C, USA – 8-11. May 2015 |
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Land/Område | USA |
By | Washington D.C. |
Periode | 08/05/2015 → 11/05/2015 |