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:

Cue

A signal or prompt that influences a person's behavior or actions.

Drive

The motivation or inherent force that pushes an individual or business towards reaching a certain goal.

Stimulus Generalization

A psychological phenomenon where a response to a specific stimulus becomes associated with similar stimuli, leading to a similar response without explicit training.

Selective Comprehension

The process by which consumers interpret information in a way that aligns with their beliefs, values, or needs, often leading to biased understanding.