After attending the Lean Accounting Summit in Las Vegas, NV, in September 2008, I committed myself to bringing the practical concepts of lean accounting into the classroom. Consequently, I engaged my MBA Accounting students toward developing a passion for lean management and lean accounting by implementing the following five initiatives:
(1) Implemented Knowledge Transfer by creating graduate-level mini-course, “Lean Accounting Transformation,” for experienced professional accountants in our MBA program. Lectures, research questions, and group projects on relevant topics included:
• Value Stream Income Statements and how they are different compared to traditional responsibility income statements by product lines, i.e., focusing on failure costs, direct costing, value stream margins, and inventory reductions.
• The New Performance Metrics that ultimately will replace standard costing variance analysis. By collaborating with one of my best students, I developed a case study to show how the metrics should be linked across three levels (organization-wide, value stream, and work cells).
• How to streamline the volume of accounting transactions through implementation of techniques such as “back-flushing” with simplification of valuation of ending inventories.
(2) Arranged field trips and speakers to deepen the understanding of Lean Accounting including a trip to John Deere – Ottumwa, Iowa Plant where the principles of the Toyota Production System have been implemented. We met with the Plant Controller who had implemented lean accounting principles in his operations. We observed JIT systems, innovations from CPI teams, and work cell box scores.
(3) Developed 12-credit post-MBA certificate program in Lean Accounting, obtained university academic approval, recruited students and began teaching courses. See link for details: http://www.mum.edu/accounting_options/certificate
(4) Presented workshop to IMA chapter (Cedar Rapids, IA), a well-received two-hour session on “Preparing for the Lean Accounting Transformation” in April, 2009 (with the assistance of one of my PhD students).
(5) Engaged consultant (Francis Mosse, Object Discovery Corporation) to teach Business Process Modeling course for Accounting MBAs. Students learned Unified Modeling Language (UML) applied through Visio software, analytical techniques and skills needed to become effective business analysts. This course enabled students to participate in streamlining of business processes.
In August 2009, I was notified as one of two professor in the USA who was awarded by Lean Enterprise Institute’s (LEI’s) and Institute for Management Accounting (IMA) 2009 Excellence in Lean Accounting Professor. It is great for MUM to receive this recognition.