A comparative analysis of management accounting systems' impact on lean implementation
by Xueping Li; Rapinder Sawhney; Eric John Arendt; Karuppuchamy Ramasamy
International Journal of Technology Management (IJTM), Vol. 57, No. 1/2/3, 2012

Abstract: Lean principles and practices have been widely adopted by many companies since the early 1990s. These companies are now beginning to realise that traditional costing and accounting methods may hinder the lean initiatives that they are implementing. This raises an important question: ''Which cost management and accounting approaches best support the newly implemented lean principles and practices?'' This paper examines the relative impact of three different management accounting systems on lean manufacturing implementation through simulation modelling with a single performance metric – net income. Three management accounting alternatives included in this study: traditional management accounting (TMA), activity-based costing (ABC), and value stream costing (VSC). This study compares these three management accounting alternatives using process simulation and statistically designed experimental methods. The results demonstrate that VSC appears to provide a bridge between operational views and financial views of lean, which enhances the transfer of information from shop level to management level.

Online publication date: Sat, 06-Apr-2013

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Technology Management (IJTM):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com