Written by Andy Cave, IMEC Regional Manager

An example of how an accounting approach may hinder continuous improvement efforts

The Accounting concept of Standard Costing was developed in the 1920’s, and its application has remained fairly constant.  Manufacturing was noted for minimal product variation (“You can buy a Model T in any color, as long as it’s black”) and long production runs creating lots of inventory whose financial value had to be estimated. Lean principles have changed the manufacturing world significantly, with shorter set-up times and significantly less inventory.  Meanwhile, Accounting still spends time analyzing and understanding labor, material and overhead variances; often generating thousands of related transactions and accrual entries.  In the Lean world, these are Non Value-Added activities; the customer is not willing to pay more for our cost variance analysis excellence. 

The Monetary Value of Time
Why Traditional Accounting Systems Make Customers Wait

Tuesday, May 10, 2016 – 2:30 to 7 PM
Radisson Hotel & Conference Center
East State Street & Bell School Road, Rockford

Rick Bastian, Blackhawk Bank Chairman & CEO: “I attended Joyce Warnacut’s presentation at the QRM conference and found her presentation to be eye opening and a challenge to my traditional understanding of manufacturing accounting. Now a college financial officer, she was a CFO at two manufacturing companies in Wisconsin that adopted QRM and put her methods and metrics into successful practice. It is a presentation that puts the power of QRM in perspective.”

"The Monetary Value of Time" presentation is indispensable for manufacturing CEOs, CFOs, GMs and Directors; CPAs, Business, Accounting and Finance Consultants, Advisors and Professors, and Economic Development Professionals. The framework presented will enable organizations to develop consistent measures and ensure that their cost accounting system isn’t motivating behaviors that add to lead time and make customers wait.

Look to the Genesis Movement, powered by IMEC, to achieve excellence, competitiveness, and a skilled, adaptable workforce. ASK Power is a manufacturer for electrical connectors for big power.

To highlight companies committed to the health and safety of employees, the State of Illinois introduced this year the Governor’s Award for Contributions in Health and Safety. With safety of highest importance in manufacturing, refining, and construction, this award will show who’s committed to protecting workers from avoidable, costly, and sometimes deadly injuries.

The Southern Illinois Occupational Safety and Health Day Conference celebrates its 15^th Anniversary on October 29, 2015.  The annual event provides expert occupational safety and health management resources for employers of all sizes and industries.

The conference offers breakout sessions and networking opportunities with speakers and vendors from industry, higher education and regulatory agencies.  It is a venue to learn about best practices and ask questions of peers and compliance agents about how standards are practically applied.

Manufacturing matchmaking has been on the forefront of the Illinois Manufacturing Excellence Center’s event calendar continuing now into its second year.  IMEC has been reaching out to a diverse group of partners throughout the state in an effort for manufacturing representatives to meet with potential new customers and suppliers.  IMEC is positioned to help manufacturers increase sales opportunities and gain a footing in regional and global supply chains.

The matchmaking and networking events  have a structured opportunity to network with potential customers and suppliers by sharing information, samples and more; similar to “speed-dating” but for suppliers and end users.

On July 23rd, IMEC President David Boulay facilitated a panel discussion on innovative solutions for a demand-driven workforce that highlighted the future of workforce and the importance of building an employer-led system.

As part of the 1000 Jobs Campaign for Chicagoland manufacturers, the interactive event focused on digital manufacturing and the development of a highly-skilled workforce that will prepare employees for factories of the future. 

On Thursday, May 28, IMEC had the privilege of joining the U.S. Department of Commerce Manufacturing Council’s Sub-Committee on Innovation and Research and Development, White House Advanced Manufacturing Partnership officials, Digital Manufacturing and Design Innovation Institute (DMDII) and local manufacturers for a round table discussion.

The discussion was held at the UI LABS: Digital Manufacturing Design Innovation Institute building in Chicago and was centered on the state of innovation in the American supply chain ecosystem, and effective strategies to help small manufacturers identify opportunities for innovation, invest in innovation and upgrade capabilities.

Our partners at Southern Illinois University's Office of Economic and Regional Development recently compiled a report for the U.S. Department of Commerce's Economic Development Administration.

"RESHORING An Opportunity for Innovation and Economic Growth in Southern Illinois" report is linked for your review.

The latest Manufacturing Matchmaking event brought together more than 35 organizations focused on manufacturing competitiveness yesterday.

Manufacturing firms represented capabilities in industries like automotive, medial devices, military and defense, mining, aerospace, construction equipment and many more. Participating manufacturers were hoping to identify future sales or procurement opportunities with others in attendance and many positive interactions were reported through initial evaluations.