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By Pooja Adhikari (A1)

The document discusses Lean manufacturing, which focuses on eliminating waste in processes to expand capacity and reduce costs and cycle times. Some key benefits of Lean include reduced costs and delivery times, improved quality and customer satisfaction, and increased employee morale. The five principles of Lean are also mentioned. Cost auditing verifies cost accounting records for accuracy and ensures adherence to costing principles, plans and objectives. The objectives and types of cost audits, including efficiency, propriety and statutory audits, are defined. Advantages include ensuring correct cost records and identifying issues, while disadvantages include the process being lengthy, expensive and not applicable for small businesses.

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Pooja Adhikari
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61 views

By Pooja Adhikari (A1)

The document discusses Lean manufacturing, which focuses on eliminating waste in processes to expand capacity and reduce costs and cycle times. Some key benefits of Lean include reduced costs and delivery times, improved quality and customer satisfaction, and increased employee morale. The five principles of Lean are also mentioned. Cost auditing verifies cost accounting records for accuracy and ensures adherence to costing principles, plans and objectives. The objectives and types of cost audits, including efficiency, propriety and statutory audits, are defined. Advantages include ensuring correct cost records and identifying issues, while disadvantages include the process being lengthy, expensive and not applicable for small businesses.

Uploaded by

Pooja Adhikari
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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By

Pooja Adhikari (A1)


What is Lean?
• Lean production focuses on eliminating waste in processes (i.e. the waste
of work in progress and finished good inventories)
• Lean production is not about eliminating people
• Lean production is about expanding capacity by reducing costs and
shortening cycle times between order and ship date
• Lean is about understanding what is important to the customer
Benefits
• Lean provides tangible benefits
• Reduces costs not just selling price
– Reduces delivery time, cycle time, set-up time
– Eliminates waste
– Seeks continuous improvement
• Improves quality
• Improves customer ratings and perceptions
• Increases overall customer satisfaction
• Improves employee involvement, morale, and company culture
• Helps “transform” manufacturers
Why is Lean Manufacturing Important and How Can it Help?

Eliminate Waste
• Waste is a negative factor for cost, deadlines and resources. It
provides no value to products or services
Improve Quality
• Improved quality allows companies to stay competitive and
meet the changing needs and wants of customers.
Reducing Costs
• Overproduction or having more materials than is required
creates storage costs, which can be reduced through better
processes and materials management
Reducing Time
• Wasting time with inefficient working practices is a waste of
money too, while more efficient practices create shorter lead
times and allow for goods and services to be delivered faster
What are the 5 Principles?
What is cost audit?
• Cost audit is the verification of cost accounts to determine the accuracy of
cost accounting records.
• It is a means to ensure that cost accounting records are in track with the
costing principles, plans, procedures and objective.
• It also check the maintenance of cost books, accounts & records.
Objectives of Cost Audit

• Maintaining the accuracy of the data related to cost.


• Coverage of all arithmetic data in any account book. 
• Maintaining all cost-related principles and complete adherence to
preparing cost accounts.
• Detect errors, drawbacks, and frauds in accounts and correcting them
immediately.
• To see if all features of cost audit are properly followed.
• Checking the overall working condition of the cost department also comes
under the process of cost audit.
• To ensure proper management and usage of cost strategies at the right
time. 
• Develop correctness among internal auditors of the company. 
Types of Cost Audits

Efficiency Audit
• Efficiency Audit is directed towards the measurement of whether corporate
plans have been effectively executed.
Propriety Audit
• The propriety Audit is concerned with executive actions and plans bearing
on the finance and expenditure of the company.
Statutory Audit
• It is the compulsory audit that required maintaining the related books and
accounts of specified establishments.
Advantages Disadvantages
• Ensures Correctness Of  Cost • Lengthy Process
Records • Expensive Process
• Identifies Loopholes And Frauds • Not Applicable For Small
• Fixation Of Price Business
• Cost Control And Reduction • Chance Of Inaccuracy
• Beneficial For The Government

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