Question

Consider a nonproduction support function (accounting, marketing, MIS, HR, etc.) that you have experience with or interest in.

• Name the department and briefly discuss how the four concepts of lean can/should be applied to that activity.
• What can that department do to become lean?

Answer 1

The department which i would like to discuss is Accounting -

The four concepts can be applied as given below:

1. Eliminating Waste - The three wastes as described in lean can be reduced while performing the accounting activities in a firm. The value addition for the accounting will be to keep updating the accounts of the firm so that no redundancy or errors occur. This can be done by implementing digital accounting softwares and ERP softwares which will streamline the accounting activities and will reduce the time and storage wastage.

2. Focus on Individuals which add value - Adding value in accounting department is to create accounts and manage finances of the firm. Hence, focussing on individuals which add value is defined as the focus on the financial activities and providing them the responsibility do that no one should be allowed to be in the process without the requirement or increasing the redundancy.

3. Using Pull demand to drive value - It states that the accounting department processes the information on account when it is required by the firm. It can also be implemented easily through ERP. ERP will help generate the final accounts using the regular entries made by the department and the document can be created when it is required by the firm. Pre- processing of documents before the time will lead to confusion and wasting time searching for the required one in the future.

4. Consistency and Excellence - Accounting department is required to have no errors in their work. Also, it should be completed on time so that the payments are not delayed and consistency is maintained. Standard Operation procedures can be created for not just accounting department but also other departments so that consistency and Excellence is maintained.