Lean manufacturing is what a lot of manufacturing firms are after these days. This means a renewed focus on productivity and profitability, particularly for firms that compete on a cost leadership strategy and are facing increased global low-cost competition. Adopting the right accounting approach to facilitate improvements in productivity is critical for these companies. Companies like Whirlpool, Pratt-Whitney (a unit of United Technologies), General Electric, and many other manufacturers are adopting the methods of lean manufacturing.

Required
1. How can productivity measures described in this chapter help a company to achieve lean manufacturing?
2. The founding principles of lean manufacturing are based in part on the Toyota Production System.
Explain the Toyota Production System and list its four main elements.