Thomas Borup Kristensen

Management Accounting System Problems in context of Lean: development of a proposed solution

1. Introduction (Morten Jakobsen, Falconer Mitchell and Hanne Norreklit) Part I: Cost Control Issues 2. Budgetary Control: Whats been Happening? (David Marginson) 3. Management Accounting System Problems in Context of Lean: Development of a Proposed Solution (Thomas Borup Kristensen and Poul Israelsen) 4. ICT Systems and Cost Management (Timo Hyvonen) 5. Functional Analysis (Takeo Yoshikawa and John Innes) 6. Target Costing: Market-Driven Cost Management (Peter Kajuter) 7. Continuous Improvement and Kaizen Costing (Takeo Yoshikawa and Reza Kouhy) Part II: Cost Management and Decision Making 8. Specifying Conditions for Cost Systems Generating Relevant Decision Making Costs (Samuel C. A. Pereira and Falconer Mitchell) 9. Designing Time-Driven Activity-Based Costing Systems: A Review and Future Research Directions (Sophie Hoozee) 10. The Theory of Constraints (David Dugdale) 11. The Dynamics of Management Accounting and Control Systems (Trond Bjornenak and Katarina Kaarboe) 12. Capacity Usage (Lino Cinquini and Andrea Tenucci) Part III: Inter-Organizational Cost Management Perspectives 13. Cost Management and the Provision of Support Services in Large Organizations (Will Seal and Ian Herbert) 14. Inter-Organizational Cost Management (Morten Jakobsen) 15. New Directions for Research on Outsourcing Decision-Making (Lars Brad Nielsen) 16. Customer Relations and Cost Management (Trond Bjornenak and Oyvind Helgesen) Part IV: Strategy and Cost Management 17. A New Framework for Strategic Cost Management: An Empirical Investigation of Strategic Decision in Britain, the USA and Japan (Chris Carr, Katja Kolehmainen and Falconer Mitchell) 18. Quality Costing (Riccardo Giannetti) 19. Environmental Cost Management for Green Production (Alessandro Marelli) 20. Performance Measurement Systems: Beyond Generic Actions (Rainer Lueg and Hanne Norreklit) 21. Methodologies for Managing Performance Measurement (Lino Cinquini, Falconer Mitchell, Hanne Norreklit and Andrea Tenucci) 22. Cost Management in the Digital Age (Alnoor Bhimani)Based on three case studies, a new Lean financial model is developed. This new model improves the organization by increasing Lean goal congruent behavior. The new financial (costing) model uses the waste categories known from Lean in order to create decision information for Lean decisions such as where to focus activities. The three case studies that the model development is based upon have a variety of problems getting their current management accounting system, standard costing systems, to work congruently with their Lean efforts. The new developed financial model improves the decision-making information in Lean organizations by rectifying the conceptual problems the three case companies have.

The performance effects of complementary management control mechanisms

Purpose The purpose of this paper is to study management control mechanisms (social, behavioral, and output control mechanisms) and their complementary effects on firm performance in lean manufacturing firms. Design/methodology/approach The study uses second-order structural equation modeling to analyze survey data from 368 different lean manufacturing facilities. Findings The paper finds that the complementary effects of management control mechanisms in lean manufacturing firms outweigh their additive effects on firm performance. Research limitations/implications Applying isolated lean management control mechanisms leads to inferior performance, as these management control mechanisms are complementary. Thus, to realize the full potential of lean manufacturing, this paper suggests that lean management control mechanisms should be implemented as an integrated control system. Practical implications Firms seeking to benefit from the implementation of lean manufacturing should understand the complementarity among the management control mechanisms, as the performance effects of lean management control mechanisms when applied together are greater than their isolated additive effects. Originality/value This paper is the first to provide empirical evidence of the superior firm performance effects of complementary lean management control mechanisms compared with their additive effects. This paper also expands the understanding of how to conceptualize lean management control mechanisms. Specifically, this is the first paper to distinguish between social cultural control and social visual control mechanisms as well as between non-financial and financial control mechanisms. This paper is also the first to use a second-order structural equation model to properly test and account for the complementary effects on firm performance that stem from multiple control mechanisms.