Chen and Taylor (2009) state that the concept of lean resource management was developed in the 1950s by the car manufacturing company Toyota. There are several aspects of lean resource management including the JIT or just in time system. Under such system, the inventory or raw materials that the company needs are ordered just in time to be used to the production process. According to Teresko (2007), Toyota’s Production System is one that emphasizes the concept of lean manufacturing systems. Through such process, the unnecessary steps and processes in the production procedure are eliminated. By focusing on product development and maximizing the capabilites and capacities of the elements of the production process, the system allows the company to create customized products at faster paces. Lean management systems are also related with lean accounting systems. Maskel (2013) states that lean accounting systems allows for better and more efficient means in order to determine the cost enters that affect company operations. In comparing lean accounting systems with the traditional costing systems, it is said that lean accounting is quick and easy to implement while there are complex and wasteful processes in the traditional accounting. This is important since the number and complexity of processes used in the company will affect the efficiency of the company as a whole.
Hino (2006) explains that the company initially produced cost management systems by determining the processes that determine departmental costs in the company. By using such system, the company was able to collect related information that allowed the company to analyze its performance in terms of cost. The processes did not stop there, as Toyota used the initial cost management system as a platform in order to improve production costs at the planning stage. Hence, the company is able to ensure that target profits are made by making costs a particular feature of the...
Please join StudyMode to read the full document