The Number One Do On Your List

The Number One Do On Your List

The Number One Do On Your List

The Number One Do On Your List

Each and every business has a do’s and don’t’s list which is like a journal where you write down all the things you want to do and see if they will work out for you in the environment your planning to be running your business in, to do so you have to make a chart but not any kind of chart: it should be the activity based chart this chart distributes the activities, management, and costs of the company. First step to apply this chart correctly take out your financials and start by making an activity based costing also called ABC chart this will help you :

a) Allocated the money in the right place.
b) It determines the cost to perform activities yet it doesn’t reduce cost or create more cost its all based on the financials you have for the project.
c) and Forms the basis for process improvement this leads to the second step

Second Step:

Activity based management this step is also called ABM it evaluates the cost and value of activities to identify opportunities for improvement, it identifies value added and non-value added activities and works on enhancing value added ones while reducing non-value added ones, usually to do that sufficiently make a list of all the departments you have and start thinking of each separately and asking yourself are they value adding or non-value adding. for example make a list like this:

Activity value adding non-value adding

Material handling yes no

HR department yes yes

Set-Up no yes

Packaging no no

now this a bit confusing if you get a double no or a double yes then that department is half good and half bad so what you have to do in that case is draw up all the problems you believe aren’t causing you to be satisfied with your department or product, and then try and figure solutions out. You could also hold a meeting and discuss all the things you don’t like with your staff and see if they have any ideas as well. After you make this list ask yourself a couple of really important questions like if i changed this activity would the consumer enjoy it?, does changing this activity help the organization reach its goals? always keep the questions coming because that will also help you realize any other weaknesses you might have in your firm.

In the ABM Step there are several functions it takes the liberty to perform as such,
– Make your activity analysis ( the list above)
-Identify your cost
-Identify opportunities for improvement (all discussed in the above paragraph)
-Identify the root cause of the problem dig so deep inside each activity you write down and don’t just cure the symptoms no you have to fix the problem and like i said earlier ask yourself as many questions as possible.
-Estimate the costs of fixing those problems and evaluate how much you have saved.
– Make the changes and evaluated the results if all works well repeat it all again for a different activity.

The Last and Third Step is how to implement both the first and second step together in one plan:

this step is called ABC/ABM implementation meaning putting your knowledge from step one into step two to get a better organizational culture, start looking at the firm from a deeper end and willing to provide change, it helps enlarge the firms communications and brings upon teamwork, as well as wrapping up the scope of your project into one chart starting with resources ending with goals.

This is a great method for businesses with trouble if you try it out and it doesn’t work then your firm is already well on its way but is just going under a bit of pressure which happens to the best of companies.

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