Activity Based Management

1. Activity Based Management ABC – Activity Based Costing (pl. rachunek kosztów działań) ABCM – Activity Based Cost Management ABM – Activity Based Management(pl. zarządzanie kosztami działań) • Evolution of the its use: • ... From a system oriented at product unit cost calculation... • ... to one concentrated on process and activities management.

2. Use of ABM information • To grow the enterprise: • eliminate non-value adding activities • improve processes and activities • To maintain operational level: • identify non-value generating activities • set priorities to improve processes and their implementation • separate and eliminate cost-generating variables • specify product/service costs • To lower production volume: • reduce costs • reduce production capacity • manage downsizing • To increase production capacity: • specify product/service costs • take decisions regarding products/services • specify capacities of production processes (analyse bottlenecks)

3. Take decisions Processes • project costing • measuring effectiveness of projects • predict / value costs • target costing • price calculation models • improve processes • reduce costs • limit economies of scale • redefine economic processes • activity management • benchmarking Measuring the effectiveness • budgeting • profitability analysis • measuring effectiveness of activities • valuing inventory • utilise production capacity ABM cycle