Value Add not Overhead The Next 10 Years

Transcription

1 Value Add not Overhead The Next 10 Years with Jean Cunningham Building LEAN Beyond Manufacturing Managing Times Press, 2003 Shingo Prize, 2004 Productivity Press, 2007 Shingo Prize, 2008 Founder and president Lean accounting / lean business management / lean office pioneer Former CFO, Lantech, Inc Former CFO, Marshfield Door Systems 2 1

2 3 Lean Accounting Transformation Consulting Consulting Analysis Analysis Transactions Transactions 4 2

3 Standard Work 10/13/2014 Simplify Transactions Simplify the transactional work Automate the Normal - Intelligent Poke Yoke - Process not functional thinking Support Change FUTURE focus Optimize Information Eliminate Waste REDUCE time and effort ELIMINATE tasks 5 VISION: Finance/Accounting/IT/HR Value Stream Benefits Process Improvement Cash Operations Pay Legal Structure Chart of Accounts Security Infrastructure Hardware & Software Transactions Automation Business Partner Performance Mgmt Asset Utilization People Deployment Strategy Problem Solving 6 3

4 7 Toyota Production System SAFETY Quality Cost Delivery JUST-IN-TIME Continuous flow Takt Time Pull system JIDOKA Andon Poka Yoke Source: Toyota Heijunka OEE Standard Work Flexible manning system Kaizen 5S Stability (process, people) Mutual trust between employees and management 8 4

5 Unauthorized pricing deductions Unauthorized quantity deductions Mis-shipments Expedite fees to customers Unauthorized early pay discounts Expedite fees from suppliers Unit of measure issues Stock adjustments Rebate corrections Pricing errors Incorrect credit card # Wrong sales tax 10/13/2014 Accounting Information Unauthorized pricing deductions Unauthorized quantity deductions Mis-shipments Expedite fees to customers Unauthorized early pay discounts Expedite fees from suppliers Unit of measure issues Stock adjustments Rebate corrections Pricing errors Incorrect credit card # Wrong sales tax 9 Accounting Info to Drive Process Improvement 60 Defects Jidoka/Launch Problem Solving 10 5

6 11 Material Cost Value Add Service Design Quantity Non-Value Add Necessary Service Design Process Design Equipment Design Suppliers Oops Service Design Equipment Design Operator Scheduling What are the existing Metrics? Quantity Who has responsibility for them? Value Add Bill of Material Inspection Purchase history Non-Value Add Necessary Bill of Material Inspection Purchase History Departmental Reports Yield Factors Setup data Inventory Oops Scrap Obsolescence 12 6

7 Life Cycle Costs 10/13/2014 Conflicts Between Accounting Practices and Life-Cycle Concept Life Cycle Cost Cash Flow Matched/ GAAP Cost 0 Product Planning Preliminary Design Detailed Design Production Logistics Support Adapted from Benjamin S. Blanchard, Design and Manage to Life Cycle Costs, Portland, OR: M/A Press 1978 Low cash outlay in the product planning and design phases disguise their impact on total product costs

8 Profit Model Profit Loss Break-even Fixed Resources $ Volume Invested Capital Fixed Assets Inventory Receivables 15 Profit Model Profit Accelerated Profit Loss Break-even $ Volume Invested Capital Fixed Assets Inventory Receivables 16 8

9 17 Questions & Answers "The most dangerous kind of waste is the waste we do not recognize." Shigeo Shingo, engineer, teacher and author on improving manufacturing systems 18 9

10 JCC Lean Business Management Lean Strategic Coaching Business Process Kaizen Events Lean Office Workshops Lean Executive Sensei Lean IT and IS Migration Lean Accounting Lean Financial Statements Lean Metrics Lean Human Resources 19 Contact Jean Cunningham Phone:

11 Value Add not Overhead The Next 10 Years with Jean Cunningham Material is Copyrighted 11