Activity based management for achieving the cost effectiveness within all units of a service organization case study of PT. Nusantara Turbin dan Propulsi (NTP) Bandung Indonesia
This research discusses about how to implement the activity-based management or abm in a service organization as a methodology to provide improvements within all units of organization through the cost manegement (activity-based costing or abc) and analysis to the operations? Activities. Pt. Nusantara turbin dan propulsi (ntp) is facing several internal and external problems such as: long turnaround time, low productivity, low product/service cost management, and threats from the oems in the competition to develop and continually exist within the mro industry. Using the abm/abc system the ntp?s Management will be able to formulate and determine appropriate strategies for the purpose of cost efficiency, increase of productivity, elimination of non-value-added activity, shorten turnaround time, improve the quality of process and cost management such as to trace the source of costs , manage and control the true costs incurred, then be able to determine an accurate and competitive cost/price to the customers.Finally, improve the company?s Profit and value. The first discussed in this research is analyzing of ? Mintzberg strategy development process ? Which includes the analysis of existing external environment and internal competencies through swot and five forces analysis. Then, the author deemed necessary to explain ? The value chain ? Michael porter?s Analysis to give better understanding about the activities within a company. Additionally, the abm analysis and improvement?s Strategy of this research is more focused on the existing problems that perceived by the customers which is conducted by a ? Customer survey ? Statistic analysis through questionnaires, and the author is using amos/spss software. The result of research shows that abm/abc is able to improve the cost effectiveness, reduce the cost that caused by waste or non-value-added task or activity, formulate and determine appropriate strategies for improvement of quality, increase productivity, and determine an accurate cost by knowing the sources of cost and true costs.
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