Wednesday, April 15, 2009

Lean Manufacturing vs. Traditional Cost Accounting

"Anyone involved in a lean transformation inevitably bumps up against the vagaries of the accounting systems that reward overproduction and waste and seem to punish true improvement. We wonder what would happen if the accountants actually came to the production floor and witnessed firsthand the havoc created by their systems."

Jefferey K. Liker, Ph.D.
Professor of Industrial and Operations Engineering
University of Michigan

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