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Activity Based Management - Dispelling the myths - Part II Posted: 16 Jun 2008 12:57 PM CDT This is a Guest Post by Rajendra Patil, Pune, India
This is the concluding part of earlier post Activity Based Management - Dispelling the Myths - Part I Myth: Cost systems play a limited role Fact: Traditionally this has been true and it has its own reasons. The calculations were not accurate. As it was based on putting overheads as 'peanut butter', it did not reflect the changes in the business scenario into the costs. ABM benefits the organization in various ways like
Myth: We cannot do anything about fixed costs; Fact: We can look at fixed costs in couple of ways
Myth: Only manufacturing costs are product costs; and Product costs are not useful for managing overhead activities. Fact: ABC is based on the 'Cause-and-Effect' relationship. The costs can be caused by product, customer, vendor, channel etc. We have to trace the expenses to the proper origin. This helps us to understand the relationship of the costs with the business scenario. With the help of this information we can take current business decisions as well as plan our costs in the future. The companies that have implemented SAS Activity Based Management Solution
On MS Excel
If you have any questions on Activity Based Management and its implementation, you may post your comments on this blog post or write to Rajendra Patil on rajendra@... on specific issues or concerns.
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SAP FICO / A CMM Level 5 IT Company / Pune, Maharashtra, India Posted: 16 Jun 2008 07:59 AM CDT A CMM Level 5 IT Company/Pune, Maharashtra, India
Hi We at NSR have an opportunity with our esteemed client Skill: 4+ yrs of Domain Exp (Manufacturing or Engineering) 2+ Yrs FICO Experience on Controlling and Profit Center Job Location:- Pune Kindly let us know your willingness for the same by sending us an updated copy of your profile alongwith the following required details to be compulsorily filled in:- *Current Company & Location:- *Current Salary:- *Expected salary:- *Notice Period:- *Total IT Experience:- *Relevant Exp:- *Ready to Relocate(Yes / No):- * Mode of Employment :- Permanent or Contractual Tasneem Fatima NSR Placement Services â„¢ - Your Path To Success Board: 020 40130300 Direct: 020 40130327 Fax : 020 40130388 www.nsrplacements.com This email may contain confidential or privileged information for the intended recipient(s) and the views expressed in the same are not necessarily the views of NSR Placement Services. If you are not the intended recipient or have received this e-mail by error, its use is strictly prohibited, please delete the e-mail and notify the sender. NSR Placement Services does not accept any liability for virus-infected mails. Apply To Job
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Posted: 16 Jun 2008 07:56 AM CDT A CMM Level 5 IT Company/Pune, Maharashtra, India
Hi We at NSR have an opportunity with our esteemed client Skill: 4+ yrs of Domain Exp (Manufacturing or Engineering) 2+ Yrs FICO Experience on Controlling and Profit Center Job Location:- Pune Kindly let us know your willingness for the same by sending us an updated copy of your profile alongwith the following required details to be compulsorily filled in:- *Current Company & Location:- *Current Salary:- *Expected salary:- *Notice Period:- *Total IT Experience:- *Relevant Exp:- *Ready to Relocate(Yes / No):- * Mode of Employment :- Permanent or Contractual Tasneem Fatima NSR Placement Services â„¢ - Your Path To Success Board: 020 40130300 Direct: 020 40130327 Fax : 020 40130388 www.nsrplacements.com This email may contain confidential or privileged information for the intended recipient(s) and the views expressed in the same are not necessarily the views of NSR Placement Services. If you are not the intended recipient or have received this e-mail by error, its use is strictly prohibited, please delete the e-mail and notify the sender. NSR Placement Services does not accept any liability for virus-infected mails. Apply To Job
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Posted: 15 Jun 2008 01:33 PM CDT Have you heard the story of "The Washer man and the Foolish Donkey"? To refresh your memory, and for the benefit of those who have not grown up listening to this moral story, it goes like this... There was once a washer man who had a donkey and a dog. One night when the whole world was sleeping, a thief broke into the house, the washer man was fast asleep but the donkey and the dog were awake. The dog decided not to bark since the master did not take good care of him and wanted to teach him a lesson. The donkey got worried and said to the dog that if he doesn't bark, the donkey will have to do something himself. The dog did not change his mind and the donkey started braying loudly. Hearing the donkey bray, the thief ran away, the master woke up and started beating the donkey for braying in the middle of the night for no reason.
Source: Dog Newton Now take a new look at the same story... The washer man (J) was a well educated man from a premier management institute. He had the fundas of looking at the bigger picture and thinking out of the box. He was convinced that there must be some reason for the donkey to bray in the night. He walked outside a little and did some fact finding, applied a bottom up approach, figured out from the ground realities that there was a thief who broke in and the donkey only wanted to alert him about it. Looking at the donkey's extra initiative and going beyond the call of the duty, he rewarded him with lot of hay and other perks and became his favorite pet. The dog's life didn't change much, except that now the donkey was more motivated in doing the dogs duties as well. In the annual appraisal the dog managed a "meets requirement" ...
Soon the dog realized that the donkey is taking care of his duties and he can enjoy his life sleeping and lazing around. The donkey was rated as "star performer". The donkey had to live up to his already high performance standards. Soon he was over burdened with work and always under pressure and now is looking for a job rotation... Regards,
Santosh Puthran
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