Lean Management Essay Example | Topics and Well Written Essays - 2250 words

Lean Management - Essay ExampleFrom the look for it brush off be comprehended that the models and fantasys which influence the pricing decisions of a firm are charge history decisions. The pricing strategy of a firm is influenced by several factors which include the fixed and variable be of the firm and the environmental factors which include legal analysis and competitor analysis. Some of the specific concepts in hail accounting are lean accounting, resource consumption accounting, transfer pricing etc. Manufacturers need to suppose various fields like the supply chain process, the assets risk to low cost etc. era determining an appropriate be strategy for the firm. The term Lean Management means the principles that are utilize for lean production. The basic idea of the concept of lean manufacturing is to reduce the wastages incurred in any form in the firm. The wastages of the firm which can be minimized through the use of Lean Management principles are the defects in pro duction as there is no proper utility of the product. The overproduction factor in firms unremarkably leads to excess finished stock, inappropriate inventory control and the efficient less production system used. The concept of Lean Management is a derivative of the Toyota Production Systems (TPS). The TPS policy reduces the time gap between the customers outrank and the delivery to the customer. The JIT system of inventory also helps in nil wastage of stocks. Resource consumption accounting is a type of principle found instruction accounting which provides the managers with a decision sustain system for the organization. other concept which affects the pricing decision is transfer pricing. Transfer pricing is quite applicable in baptistery of the manufacturing organizations. Transfer pricing helps in reducing the operating costs and also helps in lowering the powerful tax cost of global operations. Using transfer pricing economics to map all the proceedings in which the new plant entrust participate, with suppliers and customers as well as with related parties, reveals hidden opportunities (Transfer price in the Automotive Industry 2006, p. 3). Resource consumption accounting is another model which provides managers with adequate management accounting system in order to support pricing or costing decisions in a firm. This concept was specially developed for advanced manufacturing. The resource based cost accounting involves resources, their costs, the quantity based modeling, the cost behavior. Lean management accounting and Toyota Production System are the most suitable models which can be quickly and beneficially applied in Maniac Plc. The lean management system will be useful in taking pricing decisions of the firm. The lean management system is structured around three necessities of lean production strategic planning, organizational structure and human resource capabilities (Jackson & Jones 1996, p. 18). 2) Maniac Plc practices both standard cos ting as well as activity based costing system. Standard costing and variance costing are both costing types which play an important role in management accounting. The standard costing system is the estimation of the costs which are necessary for the procedure of