Effects of the lean management system on accounting: A practice on automotive industry

The purpose of this study is to analyze Lean philosophy. From this persfective to investigate lean accounting and lean costing? methodology as a consequence of lean accountancy idea, which are the dimensions of lean management and manufacturing approach within production entities.In short, meaning of lean accounting is to design all accounting systems in a company, in order to contribute and serve for the integration of lean management idea with production philosophy. Ultimate goal of lean accounting is to implement leaner processes, in order to increase management performance and efficiency, improve productivity and production quality, so to create value added finally for customer satisfaction. On contrary to the large data pools, high number of documentation and information mountains created as the consequence of traditional accounting systems, it aims to search and adopt for those applications & techniques, which simplifies company accounting procedures and management decision taking, accelerates operations in order to shorten lead times and avoids human mistakes and negligence in the process. It is to support lean management & production philosophy with lean and high quality information shaped under a lean business environment. Basic intention behind saying lean and high quality is to highlight the necessity of producing most accurate, reliable and up-to-date information in an organization with low cost and in a most efficient format. Within this context, as one of the methods (products) of lean accounting approach (idea), real life examples have been chosen as the subject of this study and its practices explained in details. Cox by utilizing the those examples, it is possible to achieve almost 95% less workload (process time) and lower data storage area requirements, which at the end reduces company costs & simplifies management and controls over the processes.Keywords: Lean Production, Lean Accounting, Lean Costing System, Lean thinking