Dr. Abubkr Ahmed Elhadi Abdelraheem
Associate Professor, Department of Accounting,
Faculty of Managerial and Financial Sciences, Peace University, Sudan.
Dr. Badreldin Elhadi Ahmed Serajeldin
Associate Professor, Department of Accounting,
Faculty of Managerial and Financial Sciences, Peace University, Sudan.
Abstract
This
study handles lean accounting and their Impact on
total quality in peace university, the purpose of this study is to determine
the extent to which lean accounting techniques are used in the total quality,
the problem with the study in need of peace university the techniques
needed to address the problem of total quality, the results of study including:
the peace
university uses modern technologies that help achieve long-term strategic goals,
the peace university is interested in applying the techniques of lean accounting,
the peace university is keen to achieve the overall quality of its operations
to meet the needs of customers.
Keywords: Lean Accounting, Total Quality.
Introduction
Comparing accounting
thinking with the successive changes in the business environment that has been
dominated by successive developments. as accounting provides a science that
helps these organizations achieve the means of success they desire and how they
can achieve a comprehensive and continuous quality guaranteeing them the causes
of success and helping them in the face of competition, the university
must use modern techniques that help achieve long-term strategic goals, and how
to use lean accounting techniques in achieving the total quality in the Peace
University.
Problem of Study
The global financial crisis led
to the collapse of many financial institutions, university and companies, which
negatively affected the economic achievements of many global economies, as a
result of the global financial crisis, modern accounting techniques emerged in
the 21st century to address the collapse of financial institutions. and then
began to pay attention to lean accounting techniques, therefore the study problem is
the following:
-
What the lean accounting?
-
Is there a statistically significant
relationship between Lean Accounting techniques and total quality?
Objectives of Study:
-
Understand the concept of lean accounting
and total quality.
-
Statement of the relationship between lean accounting
techniques and total quality.
-
Identify types lean accounting
techniques.
Hypothesis of Study:
-
There is statistically significant
relationship between lean accounting techniques and total quality.
Theoretical Framework
Lean Accounting Concept
Lean accounting mean control and
management methods that reflect the truth of good thinking and correct practices.
It makes the best decisions by means of its court tools, understandable,
correct and reliable information, and saves time and money by eliminating most
of the losses associated with traditional accounting, accounting was among
these variables (Okpala,2013), Lean
accounting is the best continuous improvement program, which
is now known in business. The term "agility" in accounting means a
set of tools that help to identify and eliminate loss. Loss does not add value
to work and improve quality. The company has adopted a number of companies,
which are different from the rest of the accounting techniques through the
benefits they provide, and through what companies adopt is to find a system for
the development and improvement in the field of work, according to the work of
management theory (Maskell & Frances, 2007), Good accounting provides useful information to managers, employees of
organizations, companies and others; to make the best decisions by means of its
own tools that eliminate most of the associated losses with traditional
accounting and control systems. These tools focus on customer value, these
decisions will improve revenue and profitability; therefore, good governance
will affect quality management comprehensive and competitive advantage (Esraa,2016),
The primary objective of lean accounting is to create value for the customer by
drawing value flows to meet Customer needs, and the agile accounting system is
a system to organize, manage and develop production, processes, Satisfy
customers so that the production process with the lowest costs and time (Burche &
Bhasin , 2006) The
benefits of Lean Accounting(Stojanovic,2006):
-
Lean accounting increases sales because it
provides better information for decision-making. If we use standard cost
information for decisions relating to such things as pricing, quoting,
profitability, make/buy, product rationalization, capital investment, and new
product introduction, we will very often make the wrong decisions. Standard
costs are just plain wrong when it comes to these kinds of decisions. Lean
companies need better tools like Value Stream Costing and Lean Decision-Making.
-
Lean
accounting clearly identifies the financial impact of lean improvements. Most companies
use traditional cost-saving models to assess the benefit of lean improvement,
and many companies look for short-term cost reductions as a result of lean
changes. These companies are frequently disappointed.
-
Lean
Accounting saves money and reduces costs. most companies have no idea about the
accounting cost because they are deeply embedded into the company’s processes
The importance of lean accounting stems from
it (meglad, 2010): -
- Provide information to make better decisions,
and make decisions to improve revenue and profitability.
- Reduce time and cost, and eliminate
unnecessary processes (losses).
- Determine the expected financial benefits from
the application of the concept of lean accounting, and focus on the strategies
that achieve these benefits.
- Long-term
improvements are encouraged by providing information and statistics.
- Focus on customer value by linking performance
measurement with value creation factors to maximize customer value.
Lean Accounting
Techniques
That lean
accounting techniques provide convenient methods for calculating production
costs by focusing on value flow rather than on products, and that agile
accounting tools support the assessment of the performance of economic units at
the cell level and the value flow of the economic unit as a whole (Abass,2015). Lean accounting techniques can be summarized in the following (Fatima,2010):
-
Value Stream
-
Value engineering
-
Target costing
-
Kaizen
-
Low Inventory
Total Quality Concept
Total Quality is defined as a philosophy, strategy, or structural system
that seeks to satisfy both internal and external customers, suppliers and
continuous improvement and improvement of the quality of products and services,
personnel, systems, information, delivery and quality of maintenance by
responding to continuous nutrition and compliance with ISO standards. Reducing
costs, increasing profits and supporting the Organization's competitive
advantage (Safaa,2007), the concept of TQM is no longer limited to conforming to product
specifications but rather focuses on reducing cost by reducing variability, the
evolution of the TQM concept has led to the need to rely on product design
instead of quality inspection, manufacturing capability rather than
performance, and cost rather than conflict as quality improvement is the key
factor in reducing costs (Mohammed,2002).
Analytical Framework
The study sample includes staff peace university, the researcher
distributed (25) questionnaire forms among some of the workers in the field
selected randomly (19) Forms were collected as 76%. (SPSS) used for analyzing
the relevant data. The researcher used statistical methods following: median, chi-square test to test the hypothesis.
Through Table (1) the sample agree the relationship
between lean accounting and total quality.
Through Table (2) it turned out to be Chi-square Asymp. Sig (.000) less
than 5%, and this confirms There is statistically significant relationship
between lean accounting techniques and total quality., this shows validity
of the study hypothesis.
Table 1
|
Phrases
|
Median
|
Case
|
|
The implementation time of the activities shall be monitored and
studied with a view to ensuring compliance with the time limit for
implementation.
|
4
|
Agree
|
|
The tasks assigned to all employees within the departments
are accurately described.
|
4
|
Agree
|
|
The senior management comprises multi-functional task
forces within the university departments to carry out continuous
improvements.
|
3
|
Neutral
|
|
There is continuous follow-up by
the University administration to the quality level Services to customers.
|
4
|
Agree
|
|
The senior management is
constantly planning to improve the quality and quality of the services
provided in a way that helps the management to implement the concept
comprehensive quality.
|
4
|
Agree
|
|
The university focuses on quality
to achieve a unique competitive advantage to ensure its growth and customer
satisfaction.
|
5
|
Strongly
Agree
|
|
The university follows lean
accounting to achieve the quality of services provided to customers
|
3
|
Neutral
|
|
The University administration
depends on setting a target price acceptable to customers.
|
4
|
Agree
|
|
The University administration
honors the employees who perform outstanding work.
|
4
|
Agree
|
|
The University uses lean
accounting techniques for its importance in achieving total quality
|
5
|
Strongly
Agree
|
Table 2
|
Phrases
|
Chi-Square
|
df
|
Asymp. Sig
|
|
The implementation time of the activities shall be monitored and
studied with a view to ensuring compliance with the time limit for
implementation.
|
200.07
|
3
|
.000
|
|
The
tasks assigned to all employees within the departments are accurately
described.
|
145.11
|
4
|
.000
|
|
The
senior management comprises multi-functional task forces within the
university departments to carry out continuous improvements.
|
247.08
|
4
|
.000
|
|
There is continuous follow-up by the
University administration to the quality level Services to customers.
|
112.76
|
5
|
.000
|
|
The senior management is constantly planning
to improve the quality and quality of the services provided in a way that
helps the management to implement the concept comprehensive quality.
|
210.43
|
4
|
.000
|
|
The university focuses on quality to achieve
a unique competitive advantage to ensure its growth and customer
satisfaction.
|
111.89
|
4
|
.000
|
|
The university follows lean accounting to
achieve the quality of services provided to customers
|
203.05
|
4
|
.000
|
|
The University administration depends on
setting a target price acceptable to customers.
|
134.77
|
4
|
.000
|
|
The University administration honors the
employees who perform outstanding work.
|
115.43
|
3
|
.000
|
|
The University uses lean accounting
techniques for its importance in achieving total quality
|
190.76
|
4
|
.000
|
RESULTS
-
The peace university uses modern technologies that
help achieve long-term strategic goals.
-
The peace university is interested in applying the
techniques of lean accounting.
-
The peace university is keen to achieve the overall
quality of its operations to meet the needs of customers.
References
-
Okpala, K.E. (2013). Lean Accounting and
Lean Business Philosophy in Nigeria: An Exploratory Research. International
Journal of Economics, Finance and Management, 2, (13), 2307-2466.
-
Esraa Abdel Salam Mohsen, (2016), The Extent of Using the Lean Accounting
in Achieving Competitive Advantage Under the Total Quality Management Approach
(Case Study – Bank of Palestine), 32.
-
Maskell.B.H&
Frances A.K. (2007) Why do we need lean accounting and how does it work? The
Journal of Corporate Accounting & Finance .18, (3) .59-73.
-
Bhasin,
Sanjay and Burcher, Peter (2006), “Lean Viewed as a Philosophy”, Journal of
Manufacturing Technology Management, pp:56 - 72.
-
Abass Nawar (2015) Use Lean accounting techniques to support lean production systems and
evaluate the performance of economic units. Al Kout Journal for Economic and administrative development Science. University of
Wasit, no. 67
-
Meglad, Mohammed Mohsen Awad (2010) Financial
Accounting System Free of Loss, PhD thesis, College of Commerce, Accounting department.
-
Fatima Garpan,(2010) Integration of
Total Quality Management and Cost-Based Activity Approach ", Journal of
Management and Economics, No. 80, Wasit University, pp. 38-1.
-
Stojanovic
Dragana& Radojevic Zoran, (2006), International Scientific, Faculty of Economic and
Management SAU in Nitra, p 1147.
-
Safaa
Mohamed Sorour, (2007), Enhancing the Effectiveness of the Clients' Side in
Egyptian Industrial Organizations Using Modern Accounting Trends, Saleh Kamel
Center for Islamic Economics, Al-Azhar University, No. 31, p. 362.
-
Mohammed
Mohammed Mansour, (2002), The Role of Modern Methods of Management Accounting
in Enhancing the Competitiveness of the Establishment, Journal of Research and
Commercial Studies, Faculty of Commerce and Business Administration, Helwan
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