Managing Value Stream Performance

Managing Value Stream Performance
SAP Insight

Managing Value Stream Performance.pdf

If your company is transforming into a lean enterprise but you still rely on standard costing methods, your lean initiatives could be in jeopardy. Standard costing focuses on product costing and cannot support the value stream costing that lies at the heart of lean accounting.  In fact, standard accounting methods are actively antilean. They generate wasteful variance reporting processes that nourish endless hours of nonvalue-added work. They foster batch production and high inventory. They are unable to identify lean improvements. And they provide reports that are difficult for people to understand.

Instead of fighting against lean, the challenge is to update your managerial and financial accounting methods to align with today’s lean business processes. A comprehensive lean profitability and cost management solution can overcome this challenge. It enables value stream performance management with lean accounting techniques that support enterprise-wide managerial and financial reporting for the lean enterprise.

This powerful tool for lean allows you to create, maintain, and update agile and adaptable analytical models that reflect actual and direct value stream cost and profitability, with little or no allocation of overhead expenses. A lean profitability and cost management solution provides a holistic view of organizational performance based on the productivity and profitability of lean value streams.  This SAP Insight explores the transformation from standard to lean cost accounting via a lean profitability and cost management solution and answers the questions you are certain to ask along the way, including the following:

  • What are the differences between standard and lean cost accounting methods?
  • What impact are my standard accounting methods having on my lean transformation efforts?
  • What challenges can we overcome with a profitability and cost management solution?
  • What benefits can we expect to realize by concentrating on the lean value stream?



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