Aero Gear, Inc. was undergoing a transition to lean business practices to improve its competitive position. Its accounting and reporting system had not changed in tandem with the changes taking place on the shop floor and its managers no longer trusted the measures they used to monitor productivity and product profitability. They were seeking measures that would help their employees improve operations as well as measures they could use to set goals, to motivate their employees, and to monitor the impact of ongoing improvement efforts. In this case, students are challenged to present alternative performance measurement systems that are consistent with lean business practices and a continuous improvement culture.
Aero Gear, Inc.: Performance Measurement, Cost Management and Product Costing in a Lean Transition
- Publisher:Institute of Management Accountants
- Publication year:2008
- Online pub date:
- Discipline: Management Accounting, Strategic Implementation, Strategic Management & Planning
- Contains:Teaching Notes
- Length:5,054 words
Region:GlobalOrganization:Aero Gear, Inc.Organization Size:Originally Published In:2008). Aero Gear, Inc.: Performance measurement, cost management and product costing in a lean transition. IMA Education Case Journal, 1( 3), Article 1.(Type:Online ISBN:9781526428400Copyright: © 2008 IMA Educational Case Journal. All rights reserved.