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					                                                                     Lean Financial Management
    A comprehensive course on the transformation of the financial side of manufacturing
                                                                                2 days

Introduction                                                  Course Programme
Many companies embark on a Lean Journey. As part of           ▪   The need for Lean Financial Management
this they tackle the Five Wastes, reduce set-up times, set    ▪   How to identify Value Streams
up Genba Kanri, measure Operating Equipment Effective-        ▪   How to create meaningful financial reports
ness and in effect do everything possible to eliminate        ▪   How to make decisions without Standard Costs
waste in the factory.                                         ▪   How to create Visual Performance Measurements
                                                              ▪   How to eliminate the Annual Budget Process
However, companies equally need to tackle the financial
area at the same time. Reducing waste starts to increase
capacity in the factory - which means standard costing sys- Who needs to attend
tems will start to show overhead variances.
                                                               Finance Directors and Financial Managers, Operations Direc-
                                                               tors and Operations Managers, Manufacturing Directors and
On top of this, most P&L reports are so difficult to under-
                                                               Manufacturing Managers and Sales Directors and Sales Man-
stand, that it is difficult to know what is actually going on.
                                                               agers so that they will be able to use Value Based Pricing to
With Lean comes the need to understand what is really
                                                               great advantage.
adding value to the business, as opposed to just being re-
allocated. This means developing Value Streams for the
business so that there is some clarity around where value What the company will gain
really is added.
                                                               The company will be able to develop a second-to-none Fi-
Visual Performance Measurements will make achievement nancial Management process that will complement their
clear and so a part of the Lean Financial Management Lean Operational Excellence programme. The company
process is to identify those performance measures and will have clear performance measurement and reporting, a
monitor them, and take action on a daily basis, rather than far lower level of transactions and hence overheads and a
wait for incomprehensible variance reports.                    far slicker budgeting and financial planning process.

Lean Finance also proposes that companies eliminate un- What the delegate will learn
necessary transactions - like three-way matching, inventory
cycle counting, works order recording, multiple invoices Delegates will come away understanding how to make the
and purchases.                                              whole financial process within the business ‘Lean’.
Finally, of course the company should replace the annual They will understand how to challenge current costing sys-
budget with a Lean Financial Sales and Operations Plan- tems, transactional systems and financial planning systems
ning process.                                              and how to implement these changes in small incremental
This pushes people to eliminating functional silos and en-
courages people to work across the “Value Stream”
Why Lean Financial Management?                                   Course Leaders

Companies implement lean thinking across the business. But                                    Richard Watkins has spe-
not many apply these ideas to the financial management of                                     cialised in helping with the un-
the company, leaving the process incomplete and to a cer-                                     derstanding and implementa-
tain extent, the business remains inefficient.                                                tion of Integrated Enterprise
                                                                                              Leadership since 1991. In 2003
This 2 day Lean Financial Management Master Class pro-                                        he became a founder member
vides a pragmatic approach to implementation and will:                                        of Delos. He teaches on Inte-
                                                                                              grated Enterprise Leadership,
▪ Actively support the lean transformation                                                    Sales Forecasting, Supply
▪ Help grow the business by providing better information for                                  Chain Management, Lean and
  better decisions                                                                            Agile Enterprise, Performance
▪ Provide lean focused measurements and reporting that                                        Measurement and Data Accu-
  motivate lean change                                           racy, as well as provides consulting support in implementing
▪ Show the true financial impact of lean improvement lead-       new processes and systems to achieve World Class cus-
  ing to growth and profitability                                tomer service. All clients have seen significant business
▪ Provide information that is clear and comprehensible to        benefits in improved customer service, inventory and profit-
  everyone, without obscure financial language                   ability. He has worked with many companies including Total
▪ Create a financial process that is lean, simple and low        Group, Messier Dowty, BAE Systems, GlaxoSmithKline,
  waste                                                          BNFL, Messier Dowty International, Remploy, Syngenta,
                                                                 Associated British Foods, Cooper Bussmann, Rizla Ltd, San-
Value Streams and Visual Performance                             ofi-Aventis, Westinghouse, Quest International and Levi
Measurements                                                     Strauss.

The course will cover the identification of value streams,
which helps to overcome the traditional functional alignment
of the business, building up functional variances rather than
reviewing total company value.                                                          Ross Maynard, Senior Con-
                                                                                        sultant with BMA Europe Ltd. is a
We will identify how to produce meaningful reports and vis-                             Fellow of the Chartered Institute
ual performance measurement enabling a company to see                                   of Management Accountants and
what is happening instantly.                                                            has worked as a coach and con-
                                                                                        sultant with a wide range of Brit-
It will also show how the costing system - particularly stan-                           ish and European organisations.
dard costing based on the allocation of overheads to inven-                             He is the author of “Successful
tory - gets challenged by a lean programme removing the                                 Business Growth” (Hodder &
need for inventory.                                                                     Stoughton 1998) as well as many
                                                                                        articles on lean accounting and
Transactions such as recording production complete, book-                               business improvement. He places
ing materials into and out of inventory all become obsolete in   emphasis on the need for strong leadership and lean-
a lean environment. Paying suppliers on sale of product          focused management systems supporting a company’s lean
eliminates hosts of transactions.                                transition.

Finally, many companies spend huge amounts of time on
budgeting which can be eliminated through a simple Lean
SOP process.

                   Contact Gordon Hammond on: T: +44 (0) 1438 833 690 - M: +44 (0) 7831 288658
                     E: gordonhammond@delospartnership.com - www.delospartnership.com

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