Accounting, Finance & Metrics for Lean Manufacturing

Financial Statements

• How to talk to accountants in their own language- assets, liabilities, GAAP and many other accounting terms and principles.

• Methods for evaluating inventory and how to use this knowledge to justify Lean Manufacturing initiatives.

• About recent accounting scandals and abuse and how they affect your own accounting system.

• How to evaluate financial statements and assess operating performance.

• About financial ratios and why they are such good indicators of financial health.

• How to spot strengths and weakness in a financial statement.

Strategic Cost Management

• About cost behavior and how changes in costs, sales volume and pricing affect operating results and, eventually, the bottom line

• Why Activity Based Costing fits so well with Lean Manufacturing.

• About the problems and weaknesses of Standard Costing systems.

• Using Break Even and Sales Mix analyses to rationalize product lines and prevent product proliferation.

Principles of Metrics

• Learn the guiding principles for measuring and managing performance using financial and other metrics.

• How to link financial metrics to managerial goals.

Strategic Financial Metrics

• About the Balanced Scorecard and how it supplements traditional financial measures

• How to calculate Economic Value Added (EVA) and why this concept is used by companies such as General Electric.

• Discounted Cash Flow and how to use it for evaluating major capital investments.

Analysis and Decision Making

• About the financial tools to identify and eliminate waste.

• Where to use Job Costing and where Process Costing is more appropriate.

• How to know when you are losing money on low-volume products.

• About Make-Buy decisions and how competitive and financial analyses are both important.

• Analysis of capital investment using Discounted Cash Flow (DCF) and other tools.

Case Problem

• Analyze the XYZ Corporation and determine how to modify accounting systems and decision processes to support Lean Manufacturing.

• Discuss your own company's issues and develop financial strategies and metrics for your own Lean Manufacturing Strategy.

1.0 Understanding Financial Statements

Assets, liabilities & Equity

Revenue & Expense

Balance Sheets & Income Statements

Cash Flow Statements

Generally Accepted Accounting Principles

Accounting abuse

Valuation Methods

2.0 Analysis of Financial Statements

Financial Models

Ratio Analysis

Du Pont Analysis

Financial & Operating Ratios

Warning Signs of Trouble

3.0 Strategic Cost Management

Cost structures & Operating Results

Break Even Analysis

Sales Mix Analysis

Cost Estimating Tools

Variable Vs Absorption Costing

Budgeting

Standard, Target & Activity Based Costing

4.0 Strategic Performance Measurement

Net Present Value

Balanced Scorecard

Economic Value Added

Return on Equity

Return on Assets Employed

Linking Goals & Metrics

5.0 Analysis & Decision Making

Information Acquisition

Job Costing vs. Process Costing

Overhead Allocation

Analysis of Variance

Identification & Elimination of Waste

Adding or Dropping Product Lines, Departments or facilities

Outsourcing & Make/Buy

Evaluating Major Investments

6.0 Comprehensive Case Problem

Lean Accounting Systems

Reports & Decisions

Participant Issues

Cost

• $9,000 

• Guaranteed - if you are not satisfied, pay only our travel cost.

Who Should Attend

Managers -- Accountants

Engineers -- Supervisors

Time

• Time 3 Days

Call To Schedule

816-931-1414