Systems & Processes: Finance Lessons from the Manufacturing Shop Floor

Jay Kothari, Ajay Dhawan and Bhairav Kothari, at a Manufacturing Plant

The precision and efficiency of manufacturing systems never cease to inspire me.

At one of the Maruti plants (India's leading automobile manufacturing company), one car comes out every 7 seconds. Each one is of a different color and configuration. And a deviation of even a second is monitored.

This is true not just for Maruti, but for all leading automotive companies. 

In my mind, all this is possible with an eye for detailing, the study of time & motion, streamlining of processes, and that drive to constantly push for the best, as well as, improve productivity. 

On one hand, we have such great examples, while on the other hand, several companies struggle to even undertake accounting month-close (or for that matter even quarter-close) on time. 

I think the finance and accounting curriculum should include manufacturing site visits to explain the power of systems and processes. A little bit of effort, and this could transform the way the finance & accounting function operates. 

No late nights. On-time reports, every time. All this is possible only with robust systems, processes, checklists, and automation.