Sunday, February 9, 2014

The Lean CFO: Architect of the Lean Management System

Nicholas S. Katko
CRC Press, 16-Sep-2013 - Business & Economics - 151 pages

The book  describes how a chief financial officer (CFO) becomes a Lean CFO by leading a company in developing and deploying a Lean management system. The finance team, business executives, and Lean leaders will all benefit from its forward-thinking improvement approach.

Explaining why the CFO role is so critical for companies adopting a Lean business strategy, The Lean CFO: Architect of the Lean Management System illustrates the process of building and integrating a Lean management system into the overall Lean business strategy. It describes why CFOs should move their companies away from performance measures based on traditional manufacturing practices and into a Lean performance measurement system. In addition, it explains how to integrate a Lean management system with a Lean business strategy to drive financial success.

Describes the logic behind why a Lean management system must replace a traditional management accounting system
Discusses how flow can drive the financial success of Lean
Demonstrates the need for constructing a value stream capacity measurement system
Explains how to break your company away from using standard costing to run your business
The book explains why you must move your company into value stream accounting, which reports your internal financial information by the real profit centers of your business, your value streams. It describes the strategic aspects of making money from a Lean business strategy and also details how to modify your enterprise resource planning system to support Lean rather than hinder it.

Table of Contents
The Architect
Designing the Lean Management System
Constructing the Lean Management System
Moving into Lean Business Decision Making
Tearing Down the Old House

The Economics of Lean
Lean Is the Strategy
Lean Every Day
The Economics of Lean
The Lean CFO—Key to Success with Lean
Five Lean Principles

$how Me the Value Stream Flow
What Is Flow?
Flow Equals Real Productivity
Eliminate Waste and Improve Flow
Demand and Cycle Times Impact Flow
Lean Performance Measurements

$how Me the Office Flow
Office Flow: The Current State
Office Waste Is More Complex
Cycle Times
Departmental Work Flow Characteristics
Wastes of Overburdening and Waiting
Waste of Interruptions
The Future State: Lean Office Flow
Step 1: Design the Processes
Step 2: Plan the Work
Prioritizing Demand
Single Piece Flow
Step 3: Controlling the Work
Level Scheduling to 80% of Capacity
Control Interruptions
Visual Workplace
Wrap-Up: Office Flow and the Lean CFO

Measure Lean Performance, Not Profits
Traditional Measurements
Lean Measurements
Changing the Measures
Link Measures to Lean Strategy
Using Lean Performance Measurements

It’s about Spending, Not Costs
Traditional Cost Management
Value Stream Accounting
Value Stream Costing
Material Spending
Labor Spending
Machine Spending
Quality Spending
Maintenance Spending
Material Management Spending
Receiving Inspection Spending
Value Stream Income Statement

The Value of Measuring Capacity
Capacity in Traditional Manufacturing
Capacity in Lean Manufacturing
Integrity of Value Stream Map Data
Operational Value of Capacity
Financial Value of Capacity

Decisions, Decisions, Decisions
The Current State: Standard Costing and Decision Making
The Future State: The Value Stream Box Score and Decision Making
Using Product Cost to Set Price
Profitability of New Business
Determining the Profitability of Customers, Markets, and Business Segments
Capital Purchases
Hiring People
Impact of Continuous Improvement

Standard Costing Debunked
A Brief History of Standard Costing
Charting the Course to No Standard Costs
Simplifying Material Cost
Simplifying Labor and Overhead Costs
Eliminating Standard Costing

Tame the ERP Beast
ERP and the CFO
Lean Operations and ERP
The Lean CFO and Work Orders
The Lean CFO and Inventory Quantity
The Lean CFO and Work-in-Process Valuation

By the People, for the People
System Thinking vs. Project Thinking
All Eyes and Ears Are on You
Keep It Simple
Stick to the Plan

Google Book Link

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