TABLE OF CONTENTS The aim of the book is to elevate the level of understanding of the impact that traditional accounting practices have on operational improvement programs that lead to a rapid lowering of any or all inventories. Without a thorough understanding of the dynamics of the impact on the profit and loss statements, existing accounting practices can have a stifling effect on improvement programs that, if allowed to continue, would lead to improved firm competitiveness.
In summary, this book explains how existing accounting practices have a tendency to report the results of operational improvement programs in a negative light. Other authors have identified this issue but have not attempted to quantify the impact to a firm s profit and loss nor have they shown the impact over a period of reporting periods.
The key selling points of this book that distinguish it from others on the topic include:
It supports lean manufacturing efforts and programs.
It provides information to operations management and finance that will enable them to successfully manage operational improvement programs.
It provides data that will enable firm management to predict the impact to the profit-and-loss statement that will result from a lean manufacturing implementation effort.
It identifies issues with traditional accounting practices used in the United States leading to poor operational decisions with respect to improved international competitiveness.
A brief review of the issues surrounding the reason to analyze the problem is presented. It includes the historical...
