Objectives

Upon completion of this course, participants will be able to:

• Explain the core philosophy and principles of Lean, Kaizen, and continuous process improvement.
• Apply **process mapping** (e.g., Value Stream Mapping) to visualize and analyze current accounting workflows.
• Identify and eliminate the **8 Wastes** (TIMWOODS) commonly found in accounts payable, financial reporting, and general ledger.
• Utilize problem-solving tools (e.g., Fishbone, 5 Whys) to determine the root cause of financial errors and delays.
• Design a future-state, optimized process that reduces cycle time and improves control quality.
• Implement the **PDCA cycle** (Plan-Do-Check-Act) for structured, iterative process changes.
• Establish effective Key Performance Indicators (KPIs) to monitor process health and improvement success.
• Apply lean principles to streamline the financial close process and reduce monthly closing time.
• Engage and manage cross-functional teams for successful process improvement initiatives.
• Sustain a culture of continuous improvement within the finance department.

Target Audience

• Accounts Payable/Receivable Managers and Specialists
• Financial Controllers and General Ledger Accountants
• Internal Auditors and Compliance Staff focused on process risk
• Financial Planning & Analysis (FP&A) Managers overseeing forecasting processes
• CFOs and Finance Leaders driving operational excellence initiatives
• Process Improvement Specialists and Quality Managers in the finance sector
• Anyone responsible for a recurring finance or accounting process

• Hands-on workshops applying Value Stream Mapping to common accounting processes (e.g., invoice processing)
• Group exercises identifying and classifying the 8 Wastes within a finance department scenario
• Individual assignments on applying the 5 Whys and Fishbone Diagram to a financial error case study
• Role-playing a Kaizen Event huddle and process review meeting
• Discussions on how to integrate process improvement with technology adoption (RPA/Automation)
• Practical lab on calculating process cycle time and identifying bottlenecks

Unit 1: Fundamentals of Lean and Kaizen in Finance

• Understanding the concepts of Lean and Kaizen and their origin (e.g., Toyota Production System)
• The focus on **value** creation and the elimination of **waste**
• Defining the **8 Wastes** (TIMWOODS) in a transactional accounting context
• The importance of standardization and stability in financial processes
• The role of the finance professional in a continuous improvement culture
• Case studies of successful Lean implementation in accounting functions

• Techniques for defining process boundaries and scope for improvement projects
• Creating "As-Is" process maps using standard notation (e.g., swimlane diagrams)
• Introduction to **Value Stream Mapping (VSM)** for end-to-end finance processes
• Calculating lead time, process time, and value-add time to quantify waste
• Identifying bottlenecks, manual touchpoints, and control weaknesses in the map
• Using VSM to prioritize improvement opportunities with the highest ROI

Unit 2: Problem Solving and Waste Elimination

• Utilizing the **5 Whys** technique for simple and deep root cause analysis
• Applying the **Fishbone/Ishikawa Diagram** to structure complex problem causes
• Data collection methods for quantifying process defects and error rates
• Using Pareto Charts to focus improvement efforts on the critical few problems
• Techniques for validating the root cause before implementing solutions
• Analyzing process variance and instability through control charts (conceptual)

• Strategies for eliminating **Waiting** (e.g., approval delays, queue times) in AP/GL
• Reducing **Motion** and **Transportation** waste (e.g., physical movement of paper/files)
• Streamlining processes to eliminate **Overprocessing** and unnecessary controls
• Techniques for reducing **Defects** (errors, rework, incorrect entries) and their impact
• Managing and optimizing **Inventory** (e.g., open invoices, work-in-progress tasks)
• Applying 5S (Sort, Set in order, Shine, Standardize, Sustain) to the finance workspace

Unit 3: Implementation and Process Design

• **Plan:** Defining the improvement objective, scope, and target metrics
• **Do:** Implementing the pilot changes and collecting performance data
• **Check:** Analyzing the results against the plan and evaluating success
• **Act:** Standardizing the successful change or starting a new PDCA cycle
• Techniques for quick, low-cost experimentation (rapid process improvement)
• Managing the risks associated with change and pilot implementation

• Developing the "To-Be" process map with waste removed and value maximized
• Applying simplification, automation, and integration principles to process design
• Designing stronger process controls that are less burdensome and more effective
• Creating standardized work instructions and procedures for the new process
• Utilizing error-proofing/Poka-Yoke concepts in transactional systems
• Integrating technology (RPA, workflow) into the optimized process design

Unit 4: Sustaining the Improvement Culture

• Defining and tracking key process KPIs (e.g., cycle time, error rate, cost per transaction)
• Developing visual controls and process dashboards (e.g., close process tracker)
• Implementing a process audit plan to ensure adherence to new standards
• The role of leadership in championing and participating in improvement activities
• Conducting regular process review meetings and huddles
• Creating a system for capturing, prioritizing, and managing new improvement ideas

• Planning and facilitating a focused **Kaizen Event** (rapid improvement workshop)
• Team dynamics and cross-functional collaboration in process improvement
• Techniques for managing resistance to change and securing buy-in
• Connecting individual process improvements to strategic organizational goals
• Sustaining the improvement momentum through recognition and continuous feedback
• Integrating Lean/Kaizen with other methodologies (e.g., Six Sigma, ITIL)