Slide 1
Strategic Management Accounting;Activity Based Management &
Pareto AnalysisPrepared by ;Farhana binti Taib2010828344Nurul
Naquiah binti Yunos2010808328Siti Nurain binti Abd Jalil
2010982619Wan Zulaikha binti Zakaria2010907959
(JACC2208A)MAF 6351
Activity Based Management (ABM)
Presentation Outline1.0 Introduction of ABM2.0 Definition of
ABM3.0 How to use ABM4.0 Benefits and drawbacks of ABM5.0
Conclusion
1.0 Introduction of ABMHave been around for more than 15
years.Radical change in cost management.Before this ABM only be use
in manufacturing organizations but now it will be use every
sectors.ABM draw ABC to provide management reporting and decision
making.
2.0 Definition of ABM
4.0 How to use ABM
Example of value-added activity & non value-added
activityE.g Manufacturing car activity
activitiesValue-added activity(RM000)Non-value added activity
(RM000)Printing the car2,000Put airbags200Storing the car1000Moving
the car to store500
4.0 Benefits of ABM
5.0 Why implementation failed?
6.0 Conclusion
Pareto Analysis
Presentation outline1.0 Introduction/History2.0 Pareto
Principle3.0 How to use Pareto Analysis4.0 Advantages of Pareto
Analysis5.0 Disadvantages of Pareto Analysis6.0 Conclusion
1.0 Introduction/History
2.0 Pareto Principles
When to use it?
3.0 How to use Pareto Analysis
Example 1 : What are causes on customer complaint on clothing
line in XYZ companyStep 1 : Identify possible causes
Potential causesParking difficultSales representative was
rudePoor lightingLayout confusingSize limitedClothing fadedClothing
shrank
Step 2 : Conduct analysis and assessment
Potential causesDefectsPercentage, %Cumulative ,%Parking
difficult852828Sales representative was rude6019.747.7Poor
lighting401360.7Layout confusing3812.573.2Size
limited3611.885Clothing faded3511.596.5Clothing
shrank103.5100TOTAL304100
Step 3 : Summarize and Graphing the result
Step 4 : Interpreting and Applying the resultParking
difficulties is the most significant effect on customer service
dissatisfactionThe other categories are having a rather trivial
effectNeed to concentrate our efforts on the following two
complaints if we want to improve customer satisfaction
4.0 Advantages of Pareto Analysis
5.0 ConclusionPareto analysis is a simple technique for
prioritizing problem-solving work so that the first piece of work
you do resolved the greatest number of problems