Comparison of ABM and Lean Operations BUSINESS APPLICATION Excerpts from a conve
ID: 2492786 • Letter: C
Question
Comparison of ABM and Lean Operations BUSINESS APPLICATION Excerpts from a conversation between two managers about their companies management systems follow. Identify the manager who works for a company that emphasizes ABM and the one who works for a company that emphasizes a lean operating system. Manager 1: We try to manage our resources effectively by monitoring operating activities. We analyze all major operating activities, and we focus on reducing or eliminating the ones that don't add value to our products. Manager 2: We're very concerned with eliminating waste. We've designed our operations to reduce the time it takes to move, store, queue, and inspect materials. We're also reduced our inventories by buying and using materials only w hen we need them.Explanation / Answer
Manager 1 works for ABM why because Activity-based management (ABM) is a method of identifying and evaluating activities that a business performs using activity-based costing to carry out a value chain analysis or a re-engineering initiative to improve strategic and operational decisions in an organization.
In this case manager 1 talking about buseness performance using operating activities
Manager 2 works for a company that emphasizes a lean operating system
lean operating system, often simply "lean", is a systematic method for the elimination of waste within a manufacturing system. Lean also takes into account waste created through overburden and waste created through unevenness in work loads. Working from the perspective of the client who consumes a product or service, "value" is any action or process that a customer would be willing to pay for.
In this case manager 2 talking about elimination of wastage so he belongs to the comapany that emphasizes a lean operating system.
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