Activity Based Management and Cost Analysis

Activity based management and cost accounting is a component of my consulting services and training programs. I worked with companies to build and establish effective processes for continuous improvement.

All businesses consume resources during the process of delivering a product or service. All of the activities utilized in this consumption process are related and carry a cost. Once the cost relationship of the activities are understood and aligned with the strategic mission of an organization it is possible to establish optimized processes for accomplishing organizational objectives.

I teach and coach the five C’s or principles of excellence as follows:

1. Continually manage activities, not resources.
2. Continually synchronize activities within a business process.
3. Continually eliminate wasteful activities.
4. Continually improve activity cost, time, and quantity.
5. Continually empower employees to improve activities.

I link this approach to utilization of lean methodologies, Six Sigma, and the Theory of Constraints in a practical and understandable ways that enable organizations to make continuous progress toward their goals and objectives.

I facilitate the use of time tested rules and approaches that enable accomplishment of 80 percent of the objective based on improving 20 percent of the process. Techniques such as value stream mapping and costing are utilized to pin point the root causes of problems and develop effective solutions.

These foundational methods and approaches are the key themes in my book, Dynamics of Profit Focused Accounting.

Since I am based in Montrose, on the western slope of Colorado, these resources are available to companies without having to search for resources outside of the region.