ABSTRACT
One of the areas of business that always seems to be one of the last to implement Lean principles is the accounting and finance area. I have tried to determine why this is by discussing it with people I know in finance and even my own son-in-law, who is a CPA and an assistant controller for a very large corporation. The most common theme I hear is that, “We have to conform to the accounting rules set forth by GAAP (General Accepted Accounting Principles).” I may take a simplistic approach to this thought process but to me the requirements set forth in GAAP are similar in nature to those set forth by the ISO, the FDA, and other controlling and regulatory bodies. There is nothing in Lean management accounting that would violate any of these principles. In an effort to remove waste from your company, I want to discuss a company I know and have read about. The company is Lantech, Inc., and they produce automated packaging machines. I have purchased equipment from them and was intrigued by their approach to “leaning out” their accounting and finance departments.
