The Monetary Value of Time ─ Why Traditional Accounting Systems Make Customers Wait

There are books on allternative accounting methods, such as Lean Accounting. However, none have focused on the impact of time and how accounting practices can be modified to acknowledge the power of time. The book presents a framework for assessing the value of time in terms of organizational strategy and competitive advantage. This is supported by high level metrics, which is in turn supported by operational metrics. This is supported by accounting data that recognizes the value of time. This data is the basis for time-based pricing models. This framework enables organizations to develop consistent measures and ensures that the cost accounting system isn’t motivating incorrect behaviors.

Joyce Warnacut has over 30 years of experience in manufacturing firms holding positions in Accounting, Finance, and Information Systems. Warnacut is a graduate of Indiana University with a degree in Accounting and is a Certified Public Accountant. Additionally, Warnacut is certified in Production and Inventory Management by APICS (The Association for Operations Management) and is also in QRM (Quick Response Manufacturing) Leadership by Tempus Institute. In her most recent tenure as Chief Financial Officer at Nicolet Plastics, Warnacut served as the chief architect for their QRM Initiative, which culminated in Nicolet being awarded the Manufacturing Leader of 2013 for Operational Excellence by the Manufacturing Leadership Council (ML-100). By applying lead time reduction strategies, combined with transitioning from traditional efficiency and utilization metrics to time-based metrics, Nicolet was able to cut lead times by 66%, reduce finished goods inventory and improve turns from 11 to 25 times per year; increase velocity three-fold, and grow both sales and bottom line profits. As CFO, Warnacut has championed lean accounting concepts that include the elimination of standard costing, the development of a new model for product pricing and profitability, and has transformed the traditional standard cost-based financial statements to a simplified value add format. A color-coded scorecard keeps the focus on time and aligns metrics with organization goals. Warnacut has presented these concepts at national and international conferences including "Leadership Unleashed – Benchmarking Best Practices" and the "Annual Conference on Quick Response Manufacturing". The reception and interest in a new way of thinking about accounting and how it can be applied to unify an organization and provide operational insights has been overwhelming