LEAN Accounting vs Throughput Accounting

“LEAN Accounting compared and contrasted with Throughput Accounting” – a presentation given by Pete Milroy, Vice President of CMS during the 3rd Annual Constraints Management User Conference, Seattle, Washington, in March 2005.

Abstract – The power of measurements is well known to both LEAN and TOC based improvement initiatives – as either an enabler or substantial blocker. While Throughput Accounting has been driving TOC-based transformation for years, LEAN Accounting is now making significant strides in enabling LEAN-based transformations as well. This presentation explores the similarities and differences of LEAN Accounting and Throughput Accounting and concludes with an analysis of the Cost World vs the Throughput World.

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"CMS has a deep understanding of the Theory of Constraints and helped us translate this knowledge into results.  We have benefited from improved confidence in our business planning through increased visibility, enabling us to identify issues and develop solutions immediately.  The systems, that CMS worked with us to develop, have positively benefited our customers and our bottom line.  We now have a production system for the 21st century."

Jim Bagshaw

Operations Manager

Flexmaster Canada Limited
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