Applying modern accounting techniques in complex manufacturing

Research output: Contribution to journalArticle

Abstract

Purpose – The purpose of this paper is to analyze the applicability of lean accounting and throughput accounting in a company with considerable investments in advanced manufacturing technology (AMT).

Design/methodology/approach – The paper compares lean accounting and throughput accounting with the traditional accounting system the company is using today. The authors investigate the differences between the three alternative approaches and use a case study approach to illustrate the effects of applying different modern accounting approaches in a complex manufacturing setting.

Findings – Pair-wise comparisons of the three approaches provide some interesting cost information as to the role of bottlenecks and value streams.

Research limitations/implications – The specific results of this study are limited to the case company, but can hopefully contribute to further research on how to combine lean and throughput accounting for mixed manufacturing environments, involving both value streams and bottlenecks.

Practical implications – Lean and throughput accounting provide other perspectives on cost information to traditional accounting, and can therefore be used in combination. The authors identify some issues and challenges involved in using lean accounting and throughput accounting in an AMT company.

Originality/value – This paper contributes with a comparison of traditional, lean, and throughput accounting in a specific industrial setting characterized by AMT and complex manufacturing.

Details

Authors
Organisations
External organisations
  • GKN Aerospace Engine Systems
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Transport Systems and Logistics

Keywords

  • Lean, Theory of constraints, Throughput, Advanced Manufacturing technology, Bottleneck, Value stream costing
Original languageEnglish
Pages (from-to)402-418
JournalIndustrial Management & Data Systems
Volume115
Issue number3
StatePublished - 2015
Publication categoryResearch
Peer-reviewedYes