10 Jan 2021

Lean Accounting – Target Costing

2021-09-16T04:42:21-04:00January 10th, 2021|Categories: Lean Accounting, Lean Learning, Lean Manufacturing|Tags: , , , , , , |

Cost-plus pricing can be fine when a lean manufacturer offers a standardized product with limited competition. Unfortunately, most manufacturers offer highly unique products or highly commoditized products. For these manufactures, target costing is a vital part of the product development process. Target costing involves understanding the needs and wants of customers, determining how much they are actually willing to pay for the value a product delivers, and defining the organization’s necessary profit before determining product cost.

7 Dec 2020

Lean Accounting – Capacity Management

2021-09-16T10:45:14-04:00December 7th, 2020|Categories: Lean Learning, Lean Manufacturing|Tags: , , , , , , |

Inventory management is vital to lean manufacturing success. On that note, before we can improve our inventory management processes it’s vital that we grasp a few basics. First, there are ultimately 3 different categories of inventory. Inventory accounts for all raw materials (RM), work in process (WIP), and finished goods (FG). Second, all inventory must be accounted for the manufacturer’s balance sheet, while all inventory changes must be accounted for on its income statement. Third…

27 Jul 2020

Kaizen Event Roles

2021-04-22T09:30:02-04:00July 27th, 2020|Categories: Lean Manufacturing|Tags: , , , , , , , , , , , , , , , |

Kaizen events are team efforts requiring participants to perform certain roles. Thus, a key part of kaizen event planning is assigning roles for the kaizen event. In this article we introduce a a few common key kaizen event roles and requirements necessary to ensure a successful kaizen event.

20 Jul 2020

The Kaizen Event

2021-04-22T09:31:29-04:00July 20th, 2020|Categories: Lean Manufacturing|Tags: , , , , , , , |

Kaizen events can be used to swiftly improve almost any process that can be observed, measured and changed. Because teams in kaizen events are cross-functional and focused, it is much easier to make changes quickly and optimally at minimal costs to the company.

6 Apr 2020

5S Sorting and Red Tagging

2021-09-14T10:14:03-04:00April 6th, 2020|Categories: Lean Manufacturing|Tags: , , , , , , , , , , , , |

Sorting is a powerful part of the lean 5S process. Sorting is also one of the most misunderstood of the 5S steps. Sorting empowers continuous improvement by eliminating items from work areas lacking use or value. Sorting can improve safety, workflow, and throughput.