MBA642 Week 3 Assignments

MBA642 Week 3 Assignments - MBA642 Week 3 Assignments 3.2.1...

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MBA642 Week 3 Assignments 3.2.1 ABM and eliminating non-value added activities The acronym ABM is short for Activity Based Management, which is a process used to study and potentially re-engineer the entire value chain of a company’s operations to find efficiencies, identify causes or profit and expense, and determine which activities add value as well as those activities that are non-value adding (Hilton, 2009). For my topic, I decided to look at how ABM is used to eliminate the non-value added activities. I found a Management Accounting article online at http://maaw.info/ArticleSummaries/ArtSumJohnson88.htm . According to Johnson (1988), the process of finding and eliminating waste includes four steps: 1. Create a flow-chart of all activities in the organization 2. Identify sources that create value and those that don’t create value 3. Identify any causes of delay such as faulty design and workload assignment conflicts 4. Begin tracking times for everything, such as cycle time and setup time, as well as
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This note was uploaded on 11/13/2011 for the course MBA 642 taught by Professor Jamesstephens during the Summer '11 term at Bellevue.

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MBA642 Week 3 Assignments - MBA642 Week 3 Assignments 3.2.1...

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