Understanding the History behind Lean Cost

When I was attending the 2008 Lean Accounting Summit in Las Vegas, Nevada, I was speaking with Jim Huntzinger about his inspiration for starting the Lean Accounting Summit. (Lean Accounting Summit)

He told me his background in Engineering and introduced his book "Lean Cost Management" to me by handing me a copy. Wow! What an honor to receive such a gift.

This book is a great historical look at how flow is truly essential to using lean cost management. In Chapter 5, Huntzinger explains how Alexander Hamilton was one of the first to suggest a different method to applying overhead than traditional cost back in the late 1800's. Hamilton's understanding of flow in operations led him to develop a cell-like system for operations. He called them "little shops" of production.

I'm only about half-way through and look forward to Chapter 19, "How to Transform to Lean Cost Management." On of my life goals is to be an engine for growth in the Lean Accounting field by transforming traditional costing systems into lean cost management systems. I'm grateful to wise mentors in this field, willing to help me learn and apply the principles of lean thinking.

Listen to this podcast between Jim Huntzinger and Mark Graban. Inaccurate Costing with Traditional Cost