Only 16% of whom, do what?
Well it’s manufacturers; a recent BDO Stoy Hayward and The Manufacturer research report into Lean Accounting in the UK claimed only 16% of manufacturers continuously eliminate waste from transaction processes, reports and accounting methods. (Read on to find out to get a copy of this 32 page insightful report.)
Would the figure be higher or lower outside of the manufacturing sector? What about manufacturing in other countries?
Surprisingly the same figure, 16% is recorded for those who ensure that financial statements are easily understood by non-accountants, a lack of customer focus perhaps? one of the key pillars of lean and six sigma.
16% also claim (could it all be the same 16% ?) that they eliminate unnecessary data from accounting reports.
The insight from the research into Lean Accounting included the following interesting insights;
- 14% of manufacturers use some lean accounting techniques, no-one claimed to have totally adopted all the techniques
- 24% of manufacturers are looking to introduce some of the techniques in the next two years
- only 3% of those using lean accounting techniques thought they were’t beneficial, so less than 1% of the whole sample!
- lean accounting will create more accurate information to aid operational decision making – 52% of respondents thought this
- whilst 42% believed it will assist in setting intelligent performance targets
- despite 14% of respondents using lean accounting techniques, only 3% have used value stream costing, one of the cornerstone techniques of lean accounting.
According to the report, manufacturers are not using the right financial metrics in measuring and monitoring their improvements under lean. Are these techniques applicable in the service sector, lean operations has started to make the transition under the banner lean service.
Before we go on though, the 14% of manufacturers already using lean accounting techniques was an insight we didn’t expect to see so please take part in our poll below ;
So what is holding these companies back from using lean accounting techniques?
The same research found that when it comes to lean accounting
- 61% don’t understand the approach
- 51% don’t understand the benefits
- 42% claim that their company culture will hold it back
If you want to read the full report then go to BDO Lean Accounting report, on this lean accounting page you find an email address to write to get hold of the full report. You might want to mention that you read this blog as well!