Lean Accounting in a Pneumatic Components Manufacturer

[custom_headline type=”left” level=”h2″ looks_like=”h4″ accent=”true”]Company[/custom_headline]
Our client is an Italian company specialized in the production of pneumatic components for industrial automation.

[custom_headline type=”left” level=”h2″ looks_like=”h4″ accent=”true”]The Challenge[/custom_headline]
The company has transformed its product family “cylinders” according to the principles of lean manufacturing, but their management accounting system has remained unchanged and based on traditional concepts such as the determination of unit standard costs. Being increasingly conscious of the inadequacy of this system to measure the effects of a lean transformation, they have consulted us to learn and then apply the principles of lean accounting.

[custom_headline type=”left” level=”h2″ looks_like=”h4″ accent=”true”]The Action[/custom_headline]
Our job has had the following objectives: Teach a number of managers of various areas the principles of lean accounting- Activate the lean accounting system for the cylinder flow – Verify the benefits of the new system and its applicability to other areas.

[custom_headline type=”left” level=”h2″ looks_like=”h4″ accent=”true”]The Results[/custom_headline]
Today the company is able to produce, at each month end and within two working days, all significant performance indicators (Supplier Service Analysis, Customer Service Analysis, Inventory Cross Analysis, OEE) as well as all economic and financial indicators (Profit & Loss Account, Cash Flow, Takt cost, return on investment, Income per person etc.)