One of the Concerns with Moving to Lean Manufacturing Is

question 46

Essay

One of the concerns with moving to lean manufacturing is the fact that conventional accounting approaches may discourage such a move. These deficiencies relate to the lag in recognizing financial benefits from the move to lean.
Required:
According to critics, what are the three primary reasons why improvements in financial results, after adopting lean manufacturing, typically appear later in conventional accounting statements than the operating improvements from implementing lean manufacturing?

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Definitions:

Metacognition

The awareness and understanding of one's own thought processes, often leading to better learning strategies and problem-solving skills.

Hypothetical-Deductive Reasoning

A cognitive process involving forming hypotheses based on observations and then logically deducing the consequences to test these hypotheses.

Moral Orientation

An individual's inherent or learned disposition towards understanding, interpreting, and acting upon moral issues.

Care

Delivering the essentials for ensuring the health, welfare, upkeep, and safety of a person or entity.