Dynamics of Profit-Focused Accounting: Attaining Sustained Value and Bottom-Line Improvement

This easy-to-understand reference articulates the best attributes of lean manufacturing, Six Sigma, Theory of Constraints, balanced scorecard, activity-based management, and other world-class management philosophies in a single text. It provides simplified applications of the balanced scorecard and activity-based management as tools and enablers for use with throughput accounting and illustrates a new business, accounting, and reporting model that utilizes the components of throughput accounting for application with Six Sigma and lean manufacturing programs. Organizations using traditional accounting systems and concepts have difficulty coping with the speed and acceleration created by lean programs. The author's profit-focused accounting approach will enable organizations to accurately measure and report the results of lean Six Sigma efforts on a monthly basis. Dynamics of Profit-Focused Accounting does not suggest throwing out existing accounting systems or generally accepted accounting principles, but rather shows you how to bridge the GAAP to a lean accounting system. It also presents advanced concepts and methodologies that encompass corporate performance management and provides the tools and techniques to use these concepts to increase profit, create value, and build a solid foundation for the future. This book is a must-read for manufacturing managers, executives, financial managers, cost and management accountants, and controllers. Key FeaturesProvides easy-to-understand explanations of lean manufacturing, Theory of Constraints, Six Sigma, balanced scorecard, and activity-based managementDelineates a new business, accounting, and reporting model utilizing the components of throughput accounting for application with lean manufacturing and Six Sigma programsOffers a methodology for combining longer term value measurements and contribution accounting profitability concepts for application in small and mid-size businessesExplains the advantages of utilizing the Theory of Constraints and throughput accounting combined with the enabler tools to improve Six Sigma and lean manufacturing initiativesSupplies hands-on financial and management decision-making tools for business managers to measure performance and effectively utilize knowledge management and strategy alignment in practical ways to achieve greater profitability