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Conference 7.286::digital

Title:The Digital way of working
Moderator:QUARK::LIONELON
Created:Fri Feb 14 1986
Last Modified:Fri Jun 06 1997
Last Successful Update:Fri Jun 06 1997
Number of topics:5321
Total number of notes:139771

4026.0. "Activity-based costing (ABC)?" by CHEFS::PARRYD () Thu Aug 03 1995 05:32

         I was recently on a course (who remembers training?) and I took 
    away an action to find out what is happening about what I think 
    should be called activity-based costing (ABC).  The idea is that this 
    is a tool for profit management and the company still hasn't cracked 
    this particular egg.  I would like to know why or whether, au 
    contraire, it's all happening but the news hasn't got to us yet.  So 
    does anyone own up to this portfolio and, if so, how'ya doin'?
         
         The basic idea is that you can both forecast AND ACCOUNT FOR 
    the added-value from programmes like TeamRoute, the U.K. public 
    sector ABU, CSS, etc. etc.  My use of upper case can be explained by 
    pointing out that you can say what you like at a PARB (or, I suspect, 
    at a phase review) because the accounting system won't track it.  
    ABC, I think, would enable us to cross-charge between programmes at 
    standard cost so that we would begin to get a measure of added value.  
    (You also have to deal with the issue that programmes do not always 
    finish on 30 June and totals to date need to be carried over.)
         
         I heard of an ABC programme (and, yes, it should be a cost 
    centre too) in Manufacturing about three years ago.  Since then, 
    nothing.  My impression is that all this talk of ABU accounts being 
    "profitable" doesn't mean much when it comes from country and 
    territory managers.
         
         Enquiring minds etc.
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4026.1Youre in luck !!CHEFS::MORRISCThu Aug 03 1995 06:246
    Talk to Margeret Haughey @REO ... She is the Worldwide ABC program
    manager and and expert in Activity Based Costing as well..
    
    She is always helpful 
    
    Chris
4026.2ABC is alive and well...as an expertiseAMIS::STRAGEDavid STRAGE @GEOThu Aug 03 1995 07:038
    Also, if you need an outstanding ABC practitioner, try Theirry
    Minveille @vb
    
    He is now part of SI, but was in Management Science not so long ago and
    has done some customer work on this topic very recently.
    
    HTH,
    David
4026.3MCS Administration ABM ProgramCHEFS::WELCHLThu Aug 03 1995 08:0520
    MCS Administration is running an Activity Based Management program in
    Europe, the Americas and Asia/Pacific. I am the European ABM Program
    Manager. Our emphasis is on:
    
    - Recognising where our resource is being spent, both on productive and
    non-productive work by regular surveys.
    - Calculating the cost of key standard transactions.
    - Analysing the cause of high costs - so called "root cause analysis".
    - Making system/process/business practice changes to eliminate
    non-productive work.
    
    Survey work started in the Americas last quarter; in Europe we are running
    a pilot in UK, Holland and Germany now, and AP will be starting
    shortly. Reviews of the data, root cause analysis and resultant actions
    will start in three weeks time.
    
    I will be happy to supply more information off-line.
    
    Laurence Welch                        
    
4026.4"We Sell It"ASABET::JDOYLEThu Aug 03 1995 09:455
    Try Charlie Kuehn @MKOTS3. Charlie is ABMS delivery person for I
    believe the ABU. He worked on ABC for a while and Digital developed
    and was or does sell a software package for this purpose.
    
                         Good Luck 
4026.5Activity Based CostingPOWDML::SPIRITOMon Aug 21 1995 15:1422
David,

Your note on ABM just came to my attention. Please give me a call if you
want to learn more about ABM or ABC. I'm the manager of the Activity
Based Management Group. As part of the Corporate Controller's organization
our mission is to spread the use of ABM throughout the company.

In fact we are currently supporting many of the efforts noted in the
other responses. With it's start in manufacturing, ABM is more frequently
being used as part of re-engineering efforts. Post re-engineering we
are using it as an on-going process management tool -- for costing,
balanced performance measures, activity based billing of services,
activity based budgeting and many others.

I'll put you on our distribution list. If you have a specific need,
we're available to work with you. We also have an extensive library
of articles, cases studies, conference material and ABM software 
(available for demo).

Regards,

Tony
4026.6Me, Too, PleaseNEMAIL::GEISDiane Ciuffetti Geis, 274-6992Mon Aug 21 1995 15:5716
    
    
    	Tony,
    
    	How are you spreading the word throughout the company?  I've heard
    	precious little about this, and would like to know a lot more.  I
    	heard it first from manufacturing when I was with CSS, though they
    	really didn't know much.  And, now that I'm with MCS, there is
    	little said about this.
    
    	Please put me on your distribution list as well - NEMAIL::GEIS.  Do
    	you have a notes conference on this subject as well or an internal
    	home page?
    
    	Thanks,
    	Diane
4026.7Another me too.POBOX::SETLOCKThu Aug 24 1995 12:426
    Tony,
    I would like to know more about ABC/ABM as well.  Will you add me to
    your mailing list too?  POBOX::Setlock or Sue Setlock @ACI.
    Thanks,
    Sue
    
4026.8please add me to your listLYOISA::LACOMBE_DFri Aug 25 1995 05:0610
    
    I was involved in ABC on a large customer site.
    Since I have some knowledge in accounting I am very interested by
    what's happening  on this special topic.
    
    Please add me in your mailing list too? LACOMBE @LYO or
    LYOIS1::LACOMBE_D
    
    thanks
    
4026.9ABM Group has started a Notes ConferencePOWDML::CAYERWed Aug 30 1995 17:0511
    The Activity Based Management has set up its own notes conference
    to update you on the progress of ABM within Digital, post articles,
    and answer your questions.  The topic is also an opportunity for
    discussion on how to use ABM in your group.
    
    In order to access it:
      At the NOTES> prompt type ->add entry powdml::notes$library:activity_
    based_management.
    
    Thankyou,
    Jeff