Value Creation with Lean Accounting

Sammanfattning: The study adapts on the cybernetic controls part of the framework of Malmi and Brown (2008) elaborating the discussion to resolve the limitations of traditional accounting practices with the combination of modern accounting techniques. Since some conventional practices of accounting are no longer commensurate to the contemporary lean manufacturing environment, the emerging techniques come in place. That is to eliminate ineffective practices and to make sure those modern accounting practices are relevant to support lean manufacturing. The proposed framework inspired by system thinking theory and value chain management, build a business model that prioritize customer first. The integrated management accounting system within the framework connects JIT+TC+TDABC+BSC together to build lean accounting in a package. The integrated management accounting techniques in a package show the systematic way to capture the performance of value chain with the support of MCS. Resource utilization is optimized once the non-value added activities are eliminated and the performance of resources capacity increased.