New Learning With Costs

I have been away from the Lean blogosphere this semester and focusing on AC 626 - Cost Accounting for Managerial Decision Making.  While I have done this type of work as an Industrial Engineer, I think this class tied together some loose ends that I was not aware that were swinging in the breeze.  While I will try to not geek out on you I think this has enhanced how I look at the impact that reducing cycle time has on your operations and eventually your customer, no matter what method you choose to use.

I think in this case Work-in-Process absorbs so much time and energy (that you have to pay someone to worry about) and the fact that our complex systems are not helping us reduce the cost of operations, we "enhance" the links between our employees and our systems with further complex processes.  This has a direct effect on unit cost and, if not managed correctly, will make us run our operations into the ground.  I think we have seen this with the automobile industry.  Why do we reward poor performance with bail-outs and loans that will never be repaid?

While I do not aspire to do Lean with all the cost improvements that we can eat, the focus is still cycle time and unit cost is a reflection on doing the right things right and making the right decisions.  In future writings I will address these with deeper detail.

In the mean time let you mind be aglow with whirling, transient nodes of thought careening through a cosmic vapor of invention!

Ditto.