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The Business Administration Department at Maharishi International University announces the publication of an article on an empirical study of accounting practices in lean manufacturing companies in the USA.  MIU researchers collaborated with the Institute of Management Accountants (IMA) on survey design and distribution.  The article by Dr. Manjunath Rao and Dr. Andrew Bargerstock entitled, “Do Lean Implementation Initiatives Have Adequate Accounting Support – The Debate of Duality,” was published in the Summer 2013 issue of Management Accounting Quarterly, a peer reviewed journal of the IMA.  Rao completed his Ph.D. in Management in May, 2013.  Dr. Bargerstock is Director of the MBA Programs and was chair of Rao’s dissertation committee.

The article describes the analysis of a subset of data gathered during Rao’s dissertation research. The study indicates that in this sample of mature lean manufacturing companies, the maturity of lean accounting implementation lags behind that of lean operations implementation, which may give rise to inadequate accounting support in lean initiatives. The survey suggests possible reasons for this inconsistency including factors such as enterprise resource planning (ERP) information systems that are traditionally programmed for standard costing even though lean accounting experts consider standard costing and variance analysis as wasteful, non-value added activities.