The Integration of the Accounting System for Implementing World Class Manufacturing (WCM) Principles

Abstract

1. Introduction 1.1. Problem Statement High-class internationally acknowledged business affects the key approaches to implementing social, ecological and business-processes as well as information space of economic actors. Successful companies do their best to meet the requirements of the clients to the fullest potential and in the shortest possible time; they expand their competitive advantages due to new ways of management organization and changing their corporate culture for the sake of constant internal improvements, make maximum effect of the use of human capacity and solving ecological issues. A priority development trend in management technologies today is the concept of World Class Manufacturing (WCM) which originated in Japan in 1970s and initially was known as a complex system of total providing maintenance (TPM). The programs WCM in different companies apply various management models and their variations: Toyota Production System, KAIZEN, Just-in-Time, Lean Manufacturing, Total Quality Management, 6 Sigma, ISO 9000, 20 keys, Theory of Constraints etc. The key points of the WCM: 1) Orientation towards internal and external customers; 2) Creation of efficient work environment; 3) Reduction of losses; 4) Increase of efficiency, reliability and equipment flexibility; 5) Quality improvement; 6) Reduced for project, administrative, manufacturing, logistic and service processes; 7) Use of the best management practices. Principles underlying WCM are constant improvement and elimination of waste. WCM suggests creation of production system in the manner of zero logic. For instance, Just in time (0 cases of delivery delays) and full control of the production quality (0 defects). WCM management methods are aimed to optimize the use of resources of a company. This method is a symbiosis of the Eastern and Western best principles of production management. Due to this concept the whole company works as a team. A world-class company is distinguished by a high quality of its production, efficient work with the clients, stable and high return at a consistently low cost, strict attitude to occupational safety and health, systematic reduction of losses, competence in all the issues, visibility, and absolute reliability. Under these conditions international professional community of accountants faces the problem of developing the concept of integrated accounting system based on a unified information system within an integral complex of human, technical, informational, organizational and institutional resources. 1.2. Relevance of the Problem Primary prerequisite is that this problem is widely discussed in an international community under growing demands to have accounting information by the increasing number of its users, and regarding the need in the information of new quality required by modern management systems. Current model in the Russian Federation is characterized by contradictions between new requirements and limited possibilities of the methods of traditional accounting and, consequently, the existence of qualitative, quantitative and structural changes in the development of the accounting system. Today in Russian companies there is a great number of types of accounting with a well-defined functional segment: operational, financial, managerial, statistical, fiscal as well as accounting principles IFRS/GAAP. This separation causes obstacles in the management information system and in transition to the principles WCM, creation of several duplicative uncoordinated large data of internal reporting: in parent company and its subsidiaries, head office and structural divisions of the company etc. This state of information processing contradicts the WCM concept because parallel management of different types of accounting and reports which differ by their formats leads to information disintegration, changes the form of presentation of one and the same initial information and makes it hard to implement coordinated actions by management services of the company. …