The Efficient Way to Control Lean Management
Many companies in the manufacturing and process industry have fully embraced the lean management philosophy; their finance and controlling departments, however, are still stuck in a 1920s approach to standard cost calculation. Outdated structures and systems need to adapt to changing requirements and reflect new challenges in production control.
The Lean Controlling approach developed by CAMELOT provides an integrated approach for managing the business by linking the operational level to the capacity and financial dimension. This requires companies to not only allocate costs more accurately, but also to dynamically adapt their planning parameters in the controlling process. The first step in achieving this is to identify the value streams of a product, product group, or service within an enterprise. These value streams are then leveraged to optimize the product mix, the customer mix, and in-house structures. This, in turn, enables companies to make the right decisions based on truly relevant information.
Lean Controlling increases transparency while reducing complexity at the same time. It is based on the following premises:
- Cost optimization with a focus on customer benefit
- More efficient and robust processes with a higher degree of automation
- Leveraging of information that is truly relevant to the steering and controlling process
- A holistic approach to control the value chain based on flow metrics
- Automate administrative tasks
- Optimize cash flows
- Accurate calculation of product profitability
- Full transparency in the calculation of materials and production costs
- Leverage target costing as a value driver
- Embed strategy within budgeting and forecasting processes
- Develop Controlling into a Lean Management Partner
- Drive organizational change towards a culture of continuous improvement