Implementing activity-based management in daily operations

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John Wiley & Sons, 1996 - Business & Economics - 245 pages
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A practical, applications-rich guide to this new cost management methodolog

Implementing Activity-Based MANAGEMENT In Daily Operation

John Miller's lucid presentation of the principles and practice of activity-based management and activity-based costing makes this book required reading for all managers, accountants, and financial officers. Now generally recognized as a more accurate method of determining the relative profitability of various business activities, ABM has become a valuable new tool for management decision making. Miller, whose experience includes the implementation of ABM at Fortune 500 companies, provides step-by-step guidance to its use and benefits:

  • Overview of ABM, including basic principles, benefits, uses, various approaches, and implementation models
  • Basic techniques of activity/product costing, with comparisons between traditional methods and ABM
  • Activity analysis—how to define processes, activities, cost-drivers, and goals
  • Data gathering for ABM—collection techniques and interviews
  • Examples of real-life implementation plans and situations, drawn from a variety of organizations
  • Ongoing system requirements, planning, and performance measurement
p>Activity-based management and activity-based costing (ABM/ABC) have brought about a sea change in cost management systems. Growing largely out of the work of the Texas-based Consortium for Advanced Manufacturing-International (CAM-I), ABC has, according to BusinessWeek, introduced "new rules for cost management as investment justification, product costing, the total life-cycle costs of products, and how to define better measures of manufacturing performance." Since it was first introduced in 1985, ABM/ABC has evolved considerably and has been applied in service companies, utilities, telecommunications, and government agencies. The use of activity-based management techniques has resulted in a much more accurate determination of the relative profitability of various business activities and, therefore, more profitable management decisions

This clearly written, example-rich book shows managers, accountants, and financial officers how to put activity-based accounting into practice as quickly and efficiently as possible. This book includes ABM Best

Practices identified by CAM-I and the American Productivity and Quality Center in a recently completed land-mark study. Implementing Activity-Based Management in Daily Operations provides step-by-step guidance on how to implement ABM at the level of daily process operations, and demonstrates, through numerous detailed examples, its benefits for cost management. Applications to a variety of organizations are covered, including service companies, government agencies, and process industries. Practical linkages between ABM/ABC and Total Quality Management and Business Process Reengineering are explained and illustrated

Implementing Activity-Based Man-agement in Daily Operations covers all aspects of ABM, from activity/product costing, through activity analysis and data gathering, to on-going system requirements and full integration. It is designed for all members of an organization involved in reaping the significant benefits of this new cost management methodology

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Contents

Uses and Benefits
15
Overview of Implementation
31
ActivityProduct Costing
49
Copyright

12 other sections not shown

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About the author (1996)

JOHN A. MILLER, CPA, is a principal with Arthur Andersen L.L.P. and an adjunct consultant with the Houston-based American Productivity & Quality Center.

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