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OPTIONAL PRE-CONFERENCE WORKSHOP
Using a Systems Approach to Developing
Lean Accounting for Defense Contractors

Bruce Baggaley and David Cochran 

Session Description:

 

Lean Accounting methods have not been used for government contracting despite their demonstrated ability to improve operational control and simplified cost accounting in commercial businesses. Despite the acceptance of lean manufacturing methods by government contracting offices, there is a reluctance to adopt accounting methods that are aligned with these methods. This half-day workshop will examine the use of a systems approach to solving  this problem.  Specifically it will deal with the following issues:

 

·       -  Why is Lean Accounting better than traditional approaches to costing?

·       -  What does value stream costing look like for commercial manufacturing companies?

·       -  How can system design methods be used to adapt value stream costing for  defense contractors?

·       -  What are the functional requirements for the adapted system to be acceptable to government auditors?

·       -  What physical solutions can be employed to adapt the value stream costing to these functional requirements?

 

The session will end with presentation and discussion of an actual case study dealing with the application of these methods to a new contract, the description of the costing system developed, and the feedback from the DCAA to the use of these methods. A discussion will ensue as to issues surrounding the broader applicability of this method.

Duration:
Half day: 1:00 p.m. - 5:00 p.m.

Fee:
$395

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