Value Stream Accounting at Nicholson

Presented By:

Ian Scott-Kerr

Co-Presented By:

James Bowden, Gaetan Desmarais and Curtis Bolton

Session Abstract:

In the fall of 2013 Nicholson began the transformation from a traditional, functionally organized manufacturer to a value stream structure in support of its lean strategy.  In this session we will describe the radical changes in accounting and financial management that were instrumental in the change, including:

  • How costs were assigned to value streams and classified as either value adding or non-value adding
  • The simplification and streamlining of the accounting processes that enabled us to close within 5 days
  • Financial decision making at Nicholson in the new, lean accounting approach
  • Reconciliation of value stream statements with GAAP requirements

As information, Nicholson is a privately owned, 67 year old British Columbia based manufacturer of machines and parts for the logging and forest products industries.

Learning Objectives:

“In this session you will learn…”

  • How value stream statements, aligned with metrics at the value stream and gemba levels can be constructed in support of strategic goals
  • How the accounting function served as a leader of the transformation effort
  • How we simplified accounting and use our own gemba board and visual management to streamline the accounting processes
  • How accounting serves as a valuable resource for value stream managers in their efforts to transform the business

About the Facilitator:

Ian Scott-Kerr is the Director of Finance at Nicholson and a key member of the senior staff leading the lean transformation.  He has worked in finance and accounting in the forestry and sawmill industries for 20 years.

James Bowden, Gaetan Desmairis and Curtis Bolton are value stream managers at Nicholson responsible for sales, operations, engineering and supply chain teams.  In these roles they have responsibility for the entire core value streams from design and sourcing to sales and shipment.