Abstract for: Dynamics of Lean Accounting Innovation on Future Performance: May “Accelerated” Accounting Lead Astray?
This research explores the effects of implementing a lean production system in a government facility that is formally governed by accounting practices which delay recognition of production savings but which informally promotes its lean efforts through attention-getting, off-the-books, “innovative” accounting. We state three propositions relating to customers effects of the lean improvements and the financial approaches. We then state four hypotheses relating to unintended effects of these measures as a facility’s workload varies, and test the hypotheses employing a system dynamics simulation. We identify minor effects upon customer behavior and labor rates oscillation, thereby filling gaps in the literature relating to government productivity improvements, and expanding knowledge relating to lean labor savings, work demand, and employment effects.