Accounting analysis and audit

Managerial accounting solutions: Lean Six Sigma application in the woodworking industry. A Practical aspect

Economic Annals-XXI

Economic Annals-ХХI: Volume 176, Issue 3-4, Pages: 118-130

Citation information:
Grosu, V., Anisie, L., Hrubliak, O., & Ratsa, A. (2019). Managerial accounting solutions: Lean Six Sigma application in the woodworking industry. A Practical aspect. Economic Annals-XXI, 176(3-4), 118-130. doi: https://doi.org/10.21003/ea.V176-12

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Veronica Grosu
D.Sc. (Economics),
Professor,
Stefan cel Mare University
13 Universitatii Str., Suceava, 720229, Romania
doruveronica@yahoo.it
ORCID ID: https://orcid.org/0000-0003-2465-4722

Laureniu Anisie
PhD Student (Economics),
Stefan cel Mare University
13 Universitatii Str., Suceava, 720229, Romania
alaurentiu@gmail.com
ORCID ID: https://orcid.org/0000-0002-3838-2812

Oksana Hrubliak
PhD (Economics),
Associate Professor,
Yuriy Fedkovych Chernivtsi National University
2 Kotsyubynsky Str., Chernivtsi, 58012, Ukraine
grubliakomo@gmail.com
ORCID ID: http://orcid.org/0000-0002-7198-9747

Alexandr Ratsa
PhD (Economics),
Assistant Professor,
Yuriy Fedkovych Chernivtsi National University
2 Kotsyubynsky Str., Chernivtsi, 58012, Ukraine
o.ratsa@chnu.edu.ua
ORCID ID: https://orcid.org/0000-0002-1881-901X

Managerial accounting solutions: Lean Six Sigma application in the woodworking industry. A Practical aspect

Abstract. The increasing complexity of business relations in the conditions of increased competition, manifested in the process of allocation and use of economic resources as well as in the process of seizing the outlets, has led to a profound revolution in the field of both management and accounting as the main source of information, being of a significant use in the decision-making process. The configuration and complexity of the functional, technical and organisational structure of economic entities, including the variety of carried out activities and the continuous introduction of advanced technologies, are thefactors that assert managerial accounting as an essential component of the accounting system. In this context, entities are constrained to a rational use of the factors of production in which the consumed resources are minimised and the benefits are maximised. In today’s global context, organisations are trying to find optimal solutions to deliver products or services that add new value, satisfying customer requirements at low cost and high quality. These issues can be answered by various methods, including Kaizen (part of Lean Manufacturing), 5Why, Six Sigma, etc. Kaizen is a Japanese word that means Continuous Enhancement. 5 Whys is a technique used in the Analyse phase of the Six Sigma DMAIC (Define, Measure, Analyse, Improve, Control) methodology. It is the great Six Sigma tool that does not involve data segmentation, hypothesis testing, regression or other advanced statistical tools, and in many cases can be completed without a data collection plan. The concepts and methods to be presented in the paper provide solutions based on complex evaluation and reporting systems. At the same time, the paper also includes some of the experience gained in the process of analysing the activity of a company operating in the woodworking industry. Lean Six Sigma can be used with maximum efficiency by woodworking firms. This enables them to achieve superior sustainable performance. The Lean Six Sigma techniques, among others, improves and accelerates processes, reducing scrap and intermediate stocks. Implemented correctly and continuously, Lean Six Sigma leads to visible improvements in the financial results.

Keywords: Six Sigma; DMAIC; Accounting; Manufacturing; Woodworking Industry; Information Technology; Costs

JEL Classification: M41

Acknowledgements and Funding: The authors received no direct funding for this research.

Contribution: The authors contributed equally to this work.

DOI: https://doi.org/10.21003/ea.V176-12

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Received 29.03.2019
Received in revised form 22.04.2019
Accepted 27.04.2019
Available online 20.08.2019

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