How lean versus traditional production might affect a management accountant trying to calculate a

Managerial Accounting (2nd Edition)

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Essay Question: How lean versus traditional production might affect a management accountant trying to calculate a company’s costs. ****How would the information a management accountant would use to determine company costs change depending on type of production? Lean manufacturing involves doing more with less, removing waste , and improving product cycle times. The process evolved from Toyota’s Production System, which is based on the just-in-time model. This model is the opposite of traditional manufacturing systems, which have large inventories, production lot sizes, process inefficiency and waste. Lean production’s goal is improved efficiency and effectiveness. 4. It is based on the principle that customers will not pay for mistakes. They will only pay for the value of the product or service they receive. Looking at manufacturing this way makes mangers define the value of their product from the point of view of the customer, rather than from the perspective of a manufacturing insider. Lean manufacturing runs on the
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This document was uploaded on 08/18/2011.

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How lean versus traditional production might affect a management accountant trying to calculate a

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