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The Lean Turnaround: How Business Leaders Use Lean Principles to Create Value and Transform Their Company by James P. Womack, Art Byrne

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CHAPTER 8

How Lean Changes Everything

Of all the excess baggage that traditional companies carry—cumbersome capital appropriation request processes, end-of-month financial reviews, material resource planning (MRP) systems, and direct/indirect labor measures—the most intractable is standard-cost accounting. This system encourages much of the bad behavior you will be working hard to eliminate. It is the number one thing you do not need, and I strongly suggest that you convert to Lean accounting methods as soon as possible.

Converting to Lean changes everything. Not everything has to change right away, however. In fact, some things can’t change until you have taken some initial steps (such as getting your value-adding activity into a one-piece flow). ...

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