ABM (Activity Based Management)
ABM's approach puts the activities in the middle of surveys and operative techniques to start processes of improvement, simplification and rationalization management
This concept places in the field of operative management and focus the intervention on carrying out and check of actions which improve the processes and activities that to compose them, through involvement of employees, both operative and strategic level. ABM develops the tools and the necessary information to realize the excellence on 4 aspects:
- tools improvement
- procedures improvement
- elimination of unvalued added activities
ABM measures these critical successful factors and is oriented to eliminate losses of times, excessive bureaucracy, inefficient activities.
ABM is a potent tool to manage complicated operations, because allows a spotting and detailed knowledge of various activities. The activities disgregation of centers of cost is an essential preamble in respect to processes aggregation forecast in reengineering activities.
Due to considerable data related to costs, the managers and team are able to see hidden things, some of which could be unpleasant. It is possible to localize available quantities and capacity costs but don't use. The firms, frequently, are surprised when know as the resources from their own costs structure are really consumed.