Value Stream Managers and Importance of Lean Accounting for a Company practicing Lean ?

Value streams are profit centres in a lean enterprise and value stream managers are responsible for the production, sale, delivery and profitability of the products and services under them. Most companies carry a false notion that value stream manager is a production manager. But in reality, he is a business manager who is responsible for the whole chain from sales to after sales service to customers. He should have a clear understanding of customer needs and changing preferences of the customer. The value stream manager reports to the customers first before reporting to the company management.

Lean accounting promotes that value stream managers must understand the monetary value of their business activities. This requires them to have knowledge of cost per minute of downtime due to breakdowns, change- over time, defects, rework, poor yield and waiting. They should be aware of excessive transport cost due to poor layout and value of slow and non- moving inventory.

Lean accounting insists that finance managers should collaborate with functional managers to understand these monetary values and work as a team toward cost reduction and to improve the bottom line.

This means Value Stream Managers will have to take care of their customers needs as well as improve the value stream financials for their stakeholders.

This and much more is in the “The Lean Business Guidebook – How to Satisfy Your Customers and Maximize Your Profit?”?Authors-MJS BINDRA and EKROOP KAUR with 482 pages, 78 exhibits in 18 chapters. The recommended methodology can be suitably modified for use in your company for implementing Lean Accounting.

?Published by Routledge: Taylor & Francis Group: Productivity Press: New York NY in paperback, Hardback and eBook.

?Please order your copy on the Links shared below: Routledge,: https://lnkd.in/dNXXe_S4; Taylor and Francis: https://lnkd.in/dFjP5sKC;

Or Amazon Website in your country

?