Activity Based Management

Activity-Based Management
Activity-based costing establishes relationships
between overhead costs and activities so that
we can better allocate overhead costs.
Activity-based management focuses
on managing activities to reduce costs.

1-2
 ABM PROFILE
ABM = COST DIMENSIONAL + PROCESS DIMENSION
ABC + PVA
Accurate Cost + Reduce Cost
Assignment

Customer Satisfaction + Profit

 Two-Dimensions of
Activity-Based Management

Cost Assignment View

Resource costs
Process View
Activity Analysis Activity Evaluation
Driver Performance
Analysis
Activities Measures

Cost Objects
REDUCE COST AND IMPROVE PROFIT 1-4
Elimination of Non-Value-Added Costs

Activities

Nonvalue-added
activities

Unnecessary Necessary

Reduce or Continually Evaluate

Eliminate and Improve
1-5
Implementing ABM

(continued on next slide)

6
Implementing ABM
(continued from previous slide)

7
 Systems planning
Systems planning provides the justification for implementing
ABM and address the following issues:
1. The purpose and objectives of the ABM system.
2. The organization’s current and desired competitive position.
3. The organization’s business processes and product mix.
4. The timeline, assigned responsibilities, and resources
required for implementation.
5. The ability of the organization to implement, learn, and use
new information.

8
 Identifikasi, definisi,
dan klasifikasi aktivitas

 Definisi
Digunakan untuk mengetahui pekerjaan apa saja yang
membentuk suatu aktivitas untuk meningkatkan efisiensi
aktivitas yang bernilai tambah.
 Klasifikasi
Digunakan untuk menghubungkan ABM dengan berbagai
usaha perbaikan berkelanjutan.
 Identifikasi
Digunakan manajemen perusahaan untuk memusatkan
perhatian pada berbagai aktivitas yang tidak bernilai tambah.
 Failure of ABM implementation
 Kurangnya dukungan manajemen tingkat atas (Lack of
support ).
 Manajer operasional dan penjualan tidak ahli menggunakan
informasi aktivitas yang baru (incapability of operational
managers).
 Kurangnya kegiatan pelatihan dan pendidikan tentang
penggunaan informasi ABM (lack of training).
 Para manajer menerima informasi baru dengan sikap skeptis
(sceptical attitude) .
 Para manajer cenderung menggunakan angka akuntansi
tradisional bersama dengan data baru tersebut (tend to use
traditional system in the lieu of new system).
 ABM NEEDS
RESPONSIBILITY ACCOUNTING

4 ELEMENTS OF RA:
1. Assigning responsibility
2. Establishing performance criteria
3. Evaluating performance
4. Assigning rewards
 Types of RA
• Financial Based
Low competition, standardized
product/activities, mass production, low IT
adoption
• Activities Based
High competition, unstandardized
product/activities, order production / mass
customization, high IT adoption
• Strategy Based (Chapter 16)
1. Assigning responsibility
2. Establishing performance criteria
3. Evaluating performance
4. Assigning Rewards
 Process Value Analysis (PVA)
Process dimension -> reduction cost
Elements of PVA:
1. Driver analysis (what causes activities cost)
Act input (resources consumed)
Act output (product resulted)
2. Activity analysis (determining VA + NVA activities
to reduce cost)
elimination, selection, reduction, uniting activities
3. Activity performance measurement
 Process Value Analysis
constant improvement, including cost reduction
through activity management

– Activity elimination
• Focus on eliminating nonvalue-added activities
– Activity selection
• Choose among sets of competing strategies
– Activity reduction
• Decrease time and resources required by an activity
– Activity sharing / uniting activities
• Use economies of scale to increase efficiency

18
• Assessing activity performance
– Financial measures
– Nonfinancial measures
• Dimensions of performance assessment
– Efficiency (Output : Input)
– Quality (durability, function, etc.)
– Time (speedier means less resources
consumption)

19
 Financial Measures of Activity Efficiency

• Reveal the current level of efficiency and the

potential for increased efficiency
– Value- and nonvalue-added activity costs
– Trends in activity costs
– Kaizen standard setting
– Benchmarking
– Activity flexible budgeting
– Activity capacity management

20
1. Value- and nonvalue-added activity costs
 Contoh Aktivitas di RTP Inc.
Aktivitas penggerak aktivitas SQ AQ SP

Pengelasan jam pengelasan 10.000 12.000 $40

Pengerjaan ulang Jam pengerjaan ulang 0 10.000 9

Penyetelan Jam penyetelan 0 6.000 60

Pengawasan Jumlah pengawasan 0 4.000 15

 Aktivitas Biaya bernilai tambah Biaya tak bernilai Biaya aktual
(SQ * SP) tambah (Karena tidak (AQ * SP)
sempurna)

Pengelasan $400.000 $80.000 $480.000

Pengerjaan 0 90.000 90.000

ulang

Penyetelan 0 360.000 360.000

Pengawasan 0 60.000 60.000

Total $400.000 $590.000 $990.000

Laporan biaya bernilai tambah dan tak bernilai tambah untuk tahun
fiskal yang berakhir pada 31 desember 2008
 2. Trend Activity
Aktivitas 2007 2008 perubahan

Pengelasan $80.000 $50.000 $30.000

Pengerjaan 90.000 70.000 20.000

ulang

Penyetelan 360.000 200.000 160.000

Pengawasan 60.000 35.000 25.000

Total $590.000 $355.000 $235.000

Pelaporan tren : biaya tak bernilai tambah

3. Kaizen Standard
Benchmarking
– Uses best practices as the standard for
evaluating activity performance
• Internal benchmarking
– Benchmarking against the best internal
performance
• External benchmarking
– Comparison with others outside the
organization
ACTIVITY BASED CUSTOMER
 ACTIVITY BASED SUPPLIER
Murray, Inc Plata Associates
Komponen Komponen Komponen Komponen
A1 B2 A1 B2
biaya pembelian

$20x80.000 $1,600,000
$52x40.000 $2,080,000
$24x10.000 240,000
$56x10.000 560,000
Perbaikan produk

$400x1600 640,000
$400x380 152,000
$400x10 4,000
$400x10 4,000
Percepatan
pengiriman produk

$2000x60 120,000
$2000x40 80,000

Biaya total $2,360,000 $2,312,000 $244,000 $564,000

unit 80,000 40,000 10,000 10,000
Biaya total unit $29.50 $57.80 $24,40 $56,40
THE END