A comprehensive workshop on the transformation of the financial side of manufacturing companies
Many companies embark on a Lean Journey. As part of this they tackle the Five Wastes, reduce set-up times, set up Genba Kanri, measure Operating Equipment Effectiveness and in effect do everything possible to eliminate waste in the factory.
However, companies equally need to tackle the financial area at the same time. Reducing waste starts to increase capacity in the factory – which means standard costing systems will start to show overhead variances.
On top of this, most P&L reports are so difficult to understand, that it is difficult to know what is actually going on. With Lean comes the need to understand what is really adding value to the business, as opposed to just being reallocated. This means developing Value Streams for the business so that there is some clarity around where value really is added.
Visual Performance Measurements will make achievement clear and so a part of the Lean Financial Management process is to identify those performance measures and monitor them, and take action on a daily basis, rather than wait for incomprehensible variance reports.
Lean Finance also proposes that companies eliminate unnecessary transactions – like three-way matching, inventory cycle counting, works order recording, multiple invoices and purchases.
Finally, of course the company should replace the annual budget with a Lean Financial Integrated Business Planning process.
This pushes people to eliminating functional silos and encourages people to work across the “Value Stream”
▪ The need for Lean Financial Management
▪ How to identify Value Streams
▪ How to create meaningful financial reports
▪ How to make decisions without Standard Costs
▪ How to create Visual Performance Measurements
▪ How to eliminate the Annual Budget Process
Who needs to attend
Finance Directors and Financial Managers, Operations Directors and Operations Managers, Manufacturing Directors and Manufacturing Managers and Sales Directors and Sales Managers so that they will be able to use Value Based Pricing to great advantage.
What the company will gain
The company will be able to develop a second-to-none Financial Management process that will complement their Lean Operational Excellence programme. The company will have clear performance measurement and reporting, a far lower level of transactions and hence overheads and a far slicker budgeting and financial planning process.
What the delegate will learn
Delegates will come away understanding how to make the whole financial process within the business ‘Lean’.
They will understand how to challenge current costing systems, transactional systems and financial planning systems and how to implement these changes in small incremental steps.