PDF Download Who's Counting? A Lean Accounting Business Novel, by Jerrold M. Solomon
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Who's Counting? A Lean Accounting Business Novel, by Jerrold M. Solomon
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"Who's Counting?", by Jerrold M. Solomon, is a business novel that, for the first time, explains how accounting and manufacturing personnel must develop a partnership to successfully achieve world class results. This novel takes readers on a successful "Lean Journey", and illustrates how to bring accounting practices into the 21st century in order to compete in today's global market. A must read for all those interested in successfully implementing lean accounting! Jerry Solomon and Rosemary Fullerton's latest book, "Accounting for World Class Operations: A Practical Guide for Providing Information in Support of the Lean Enterprise" is an excellent follow-up book to Who's Counting?. The authors provide a roadmap for moving from a traditional standard cost system to a simple accounting system that provides appropriate information for a Lean Manufacturing Environment.
- Sales Rank: #404726 in eBooks
- Published on: 2013-09-10
- Released on: 2013-09-10
- Format: Kindle eBook
Most helpful customer reviews
10 of 11 people found the following review helpful.
Required Reading for Accountants assisting Lean Operations
By Donald Mitchell
Very few companies in the United States use Lean manufacturing or service methods. Because of this, most people in business don't know much about Lean operations. Most especially, they don't know how accounting has to change in order to support and strengthen Lean operations. Who's Counting takes the fundamental messages about Lean operations and translates them into an easier to understand format for adjusting accounting to fit.
In many companies that have started Lean operations, the effort was later abandoned because no one understood the accounting and earnings implications of a Lean transition until it was started.
These challenges include going from measuring and "controlling" after-the-fact with statistics that operating people don't find very helpful to real time measurements created and used by the operators, dealing with write-offs as obsolete inventory is discovered as inventory levels are reduced, absorbing an unusual amount of overhead costs as production drops along with inventory, and finding enough work for operating people to do after their productivity goes up by 50 plus percent. Along the way, the company has to run its old accounting methods while it adjusts to the new ones. There's a terrific amount of work involved for the accountants, and it doesn't go away. At the same time, they need to learn about Lean operating methods so that they can play a role in finding better process methods.
Who's Counting? exposes almost all of the issues that can affect accounting in the first two years of a Lean transition. From that point of view, this is a five-star book.
I found, however, that the book was a little light on explaining how the Lean transition would take place in operations. Most accounting people will need to read another book about Lean operations to fully understand the concepts.
The situation in the book will strike some as far-fetched, but it works well to expose the relevant subjects. Many companies start Lean transitions without understanding the implications for how operations will have to be adjusted. That's about the same as in the book where the Lean expert, Mike Rogers, fails to provide enough advance warning about accounting and earnings issues.
I especially liked the ways that Mr. Solomon showed how denial can play a role in slowing down progress . . . and that the motives of those encouraging Lean operations may not be totally pure (as shown here by Joe Reynolds, a member of the board).
As I finished the book, I wondered how companies could get a more realistic understanding of what the Lean development process is like for all of their people before starting. I suspect that many more Lean transitions would succeed if the decision-makers and essential implementers could do so.
Good luck with getting rid of "muda" ("waste" in English).
7 of 7 people found the following review helpful.
Decent Read on Lean
By Frontier Accountant
This is a pretty lousy novel, having weak dialog and lacking any meaningful character development. However, it is a decent business book telling us the fictional story of one company's quest to become lean. Saying that it is "a lean accounting novel" is somewhat of a misnomer since it doesn't tell us much about lean accounting. Rather the book tells us more about accounting in a lean environment.
The book has a fault common in many business books. Rather than compare two different business techniques done well, it compares a new technique with a well-established technique done poorly. When the company's problems with MRP are discussed, MRP is blamed for the problems, not the company's inept use of MRP. In the story, when the company lies to its MRP system, the MRP system is blamed, not the poor management of the system.
Not enough time was spent on what lean is, and the theories and techniques of lean.
2 of 2 people found the following review helpful.
A Must Read for Leaders on a Lean Journey
By Finance Leader
I work in Finance for a Fortune 200 company that is 100% committed to the Lean Journey. This book has been distributed, read and re-read throughout the company's leadership, both in Finance and in other areas, to help frame the issue of why Finance can be a barrier or an enabler to Lean. It does a great job of explaining not only the technical issues but really demonstrates the cultural obstacles and why they exist, all in an easy-to-read story. I would highly recommend this book to anyone and in particular Finance leaders who are wondering where they fit in with Lean.
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