| |
Lean is simplicity. It is much less complicated than almost any other
philosophy of running a business. Yet some people, certain vendors, consultants
and academics, are trying to make it more complicated defeating the very
essence of LEAN.
LeanWerks simplifies every task from order entry to invoicing. Dramatically
reducing waste at each process. Introducing kanban order cards for maximum
real-time control of your business information and order processing efficiency.
Advanced technology such as resource factoring allows for a consistent distribution
of overhead creating an extremely accurate value stream costing P&L report in minutes.
LeanWerks exports invoicing data to Quick Books Enterprise accounting software.
LeanWerks requires both SmartQuote and PIP Plus to be installed to function properly.
LeanWerks is not an accounting program but it utilizes many accounting functions within the
program framework.
 |
|
One company that made the transition from traditional to lean is Sunset Manufacturing in Tualatin, Oregon. The company, started in the 1940s and now in its third generation of family management, implemented lean manufacturing methods in the early 2000s. But they found that the information they needed to successfully support the lean environment were not being served by the traditional accounting practices that were in place. In a lean operation, physical attributes become increasingly important and the information supporting the operation becomes directly associated with the physical actions of the operation. In other words, accountability was at the point of action.
|
 |
|
"What we quickly realized is that our traditional job costing data collection, work flow systems and labor tracking needed an overhaul," said James C. Warren, president of Sunset Manufacturing. "Our analysis clearly showed that our old way of accounting for shop floor production was too costly, time-consuming and inaccurate to support critical management business decision-making."
|
To illustrate the advantages of a manufacturing company using lean methodology, the following table is a case study of actual results, showing the difference in profit from a company using traditional metrics and accounting methods, and one using lean metrics and accounting methods.
Outcomes of Traditional vs Lean Metrics
|
|
|
Metrics |
Traditional Manufacturing Company |
Lean Manufacturing Company |
Value-Added Sales Dollars |
$285,500 |
$285,500 |
Team Members |
28 |
20 |
Input Hours |
4,844 |
3,460 |
Output Hours at Shop Rate |
3,005 |
3,965 |
Shop Rate Dollars per Hour Quoted |
$95 |
$72 |
Shop Rate Dollars per Hour Produced |
$58.94 |
$82.52 |
Input Hours per Member |
173 |
173 |
Output Hours per Member |
107.32 |
198.25 |
Value-Added Sales per Member |
$10,196.42 |
$14,275.00 |
Throughput Efficiency Percent |
62.04 |
114.6 |
Lean Performance Indicator (LPI) |
53.67 |
99.13 |
Lean Performance |
Poor |
Lean Level C |
Profit Percentage |
? |
9.8% |
Keep it simple - Keep it LEAN
Call or email ShopWerks
Software for more information.
Click here for installation and support details.
top of document
|
