Activity Based Cost Management

ABCM is the key focus area of the Cost practice at Cost Intelligence. Our methodology is simple and easy to implement. It is a people based exercise, with all departmental heads fully understanding and owning up their departmental costs and deliverables. In Activity Based Management, the end-to-end Business processes of the enterprise, is broken down to various activities. These activities are identified as Value-added and Non-value added activities and efforts are taken to optimize these activities. Activity-Based Costing goes beyond traditional accounting methods to recognize causal relationship of cost drivers to activities. Information relating to profitability of various segments Customer, product, service etc., is used to make strategic decisions.

Value Stream Mapping

Value Stream Map is a visual depiction of Current State of activities (CSM) clearly identifying & displaying obstructions in Value Delivery Process. Current State Map (CSM) coupled with Future State Map (FSM) makes a complete Lean roadmap for an Organization. VSM is a Change Management Tool. It is a “Customized Change Management’. VSM teaches us to see how the Value Delivery is taking place within the Organization.