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| Activity Based Management (Process)
Reporting |
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Activity Based Management (ABM)
is a method of identifying and evaluating activities
that a business performs using Activity Based Costing
to carry out a Value Chain Analysis or a Re-engineering
initiative to improve strategic and operational decisions
in an organization. Activity Based Costing establishes
relationships between overhead costs and activities so
that overhead costs can be more precisely allocated to
products, services, or customer segments. Activity Based
Management focuses on managing activities and processes
to reduce costs and improve customer value.
In a business organization, Activity Based Costing (ABC)
is a method of allocating costs to products and services.
It is generally used as a tool for planning and control.
This is a necessary tool for doing Value Chain Analysis. |
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| ABM (Process) Information Supports: |
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- Operational and Strategic Modeling,
and Forecasting / Planning capabilities
- Product, Customer, and Channel detailed
costs and profitability
- Process and Activity costs (focused
on critical processes)
- Supports analysis, alternative assessment
and decision making
- Supports Value analysis, and Business
Process Re-engineering (BPR)
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| Identifies Cost of Processes / Activities
performed throughout the company: |
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- Focuses attention on high cost,
high value activities
- Quantifies the benefits from eliminating
low value added activities
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| Develops Total Costing for a single
Unit of Output |
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- Understanding this relationship
provides better insight into cost behaviour
- Identifies the most important Cost
Drivers for possible use in Performance Measurement
Systems
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| Provides Total Cost of Products,
Customers and Channels |
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- Leads to more meaningful Profitability
analysis
- Provides tools to assess alternatives
such as:
- Pricing of Products & Services
- Sales and Marketing promotions
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| Thejes Consultants have the following
Activity Based Costing / Management systems development
and implementation experience: |
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- Implemented Activity Based Costing
at AT&T Canada, and provided detailed activity
costs and value analysis to support Business Process
Transformation efforts.
- $1.5 Million project using a phased
approach to developing and implementing a corporate
Performance Measurement and Reporting System (PMRS)
at AT&T Canada. Led a complex sub-project to
create an innovative costing model working with a
leading edge specialist, to assign network assets
and operating costs to AT&T Canada products.
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| Request
for Proposal |
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