Activity-based management as an instrument to facilitate effective management decision-making and organisational improvement
- Smit, R.
- Authors: Smit, R.
- Date: 2008-06-27T13:47:06Z
- Subjects: Activity-based costing , Decision making , Organizational effectiveness
- Type: Thesis
- Identifier: uj:10106 , http://hdl.handle.net/10210/748
- Description: This study sets out to prove that Activity-Based Management is still a relevant instrument to facilitate effective management decision-making and organisational improvement. In the light of all the latest techniques and methodologies that currently exist to measure and rectify organisational performance, the obvious question might be “but why Activity-Based Management?”. Whilst certain techniques and methodologies concentrate on either inputs, outputs and / or on the entire process, Activity-Based Management was selected because it specifically analyses the activities (transformation component) of a business, plus the fact that this methodology has been refined and tested with great success in large organisations such as Eskom. Given the selection of management tools available, an instrument such as Activity-Based Management is usually not implemented alone, but may be supported by one or more other approaches. For this reason, Activity-Based Management is contrasted with several other popular instruments in the literature review. If properly applied, Activity-Based Management can provide management with a sound decision-making platform for correctly aligning resources and work activities. It produces cost information by linking human resource costs to activities and then tracks these human resource costs (inputs) by activity (transformation) and traces them to the point where products and / or services (outputs) reach their destination / customers (result). It also serves as a useful base to improve strategic and operational decisions and for reviewing and updating the organisation structure of a business. This study reworks and researches previous data related to a project carried out by Eskom (exploratory research) with the purpose of testing the primary research objective. Based on a predetermined dictionary of activities and an associated data collection form, a census was used to collect the data. The resulting reports highlight the main obstructions to effective performance and they mainly relate to an imbalance of time expenditure amongst the various activities performed, an outdated organisation structure and a misalignment of effort with the new vision and strategies formulated. The study is concluded with a number of recommendations for improvement and for further study. Briefly, these recommendations address: shifting the focus from support to core activities and placing a higher emphasis on activities that support the new vision and strategies of the business; eliminating unnecessary activities and reducing the amount of time wasted; and eliminating fragmented work, dealing with surplus manpower numbers and revising the organisation structure. , Prof. H.E.C. de Bruyn
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- Authors: Smit, R.
- Date: 2008-06-27T13:47:06Z
- Subjects: Activity-based costing , Decision making , Organizational effectiveness
- Type: Thesis
- Identifier: uj:10106 , http://hdl.handle.net/10210/748
- Description: This study sets out to prove that Activity-Based Management is still a relevant instrument to facilitate effective management decision-making and organisational improvement. In the light of all the latest techniques and methodologies that currently exist to measure and rectify organisational performance, the obvious question might be “but why Activity-Based Management?”. Whilst certain techniques and methodologies concentrate on either inputs, outputs and / or on the entire process, Activity-Based Management was selected because it specifically analyses the activities (transformation component) of a business, plus the fact that this methodology has been refined and tested with great success in large organisations such as Eskom. Given the selection of management tools available, an instrument such as Activity-Based Management is usually not implemented alone, but may be supported by one or more other approaches. For this reason, Activity-Based Management is contrasted with several other popular instruments in the literature review. If properly applied, Activity-Based Management can provide management with a sound decision-making platform for correctly aligning resources and work activities. It produces cost information by linking human resource costs to activities and then tracks these human resource costs (inputs) by activity (transformation) and traces them to the point where products and / or services (outputs) reach their destination / customers (result). It also serves as a useful base to improve strategic and operational decisions and for reviewing and updating the organisation structure of a business. This study reworks and researches previous data related to a project carried out by Eskom (exploratory research) with the purpose of testing the primary research objective. Based on a predetermined dictionary of activities and an associated data collection form, a census was used to collect the data. The resulting reports highlight the main obstructions to effective performance and they mainly relate to an imbalance of time expenditure amongst the various activities performed, an outdated organisation structure and a misalignment of effort with the new vision and strategies formulated. The study is concluded with a number of recommendations for improvement and for further study. Briefly, these recommendations address: shifting the focus from support to core activities and placing a higher emphasis on activities that support the new vision and strategies of the business; eliminating unnecessary activities and reducing the amount of time wasted; and eliminating fragmented work, dealing with surplus manpower numbers and revising the organisation structure. , Prof. H.E.C. de Bruyn
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Factors that influence project cost estimate accuracy at an engineering broadcasting company
- Authors: Ngobeni, Princess
- Date: 2018
- Subjects: Broadcasting - Economic aspects , Costs, Industrial - Estimates , Activity-based costing , Budget in business , Project management
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/393695 , uj:32583
- Description: Abstract : Engineering broadcasting is a highly competitive industry governed by an independent regulatory body. Due to the increasing demand of broadcast services, broadcasting companies need to deliver projects within allocated time, quality and budget. The engineering broadcasting company is a matrix structured organisation which makes use of projects to broaden or increase the company revenue to stay relevant in the market. However, the broadcasting company is faced with the problem of inaccurate project cost estimations which resulted to compromised quality of work (underestimated) or wasteful expenditure and lost opportunities (overestimated). To address the problem, a research was conducted at an engineering broadcasting company. The objective of the research was to identify factors influencing the accuracy of project cost estimation. The researcher conducted open-ended interviews with several employees of the broadcasting company. The research findings were shared with the reader and engineering broadcasting companies experiencing the same problem. This research will help engineering broadcasting companies become fully aware of factors influencing the accuracy of project cost estimation. The research identified both internal and external factors influencing the accuracy of project cost estimation. , M.Phil. (Engineering Management)
- Full Text:
- Authors: Ngobeni, Princess
- Date: 2018
- Subjects: Broadcasting - Economic aspects , Costs, Industrial - Estimates , Activity-based costing , Budget in business , Project management
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/393695 , uj:32583
- Description: Abstract : Engineering broadcasting is a highly competitive industry governed by an independent regulatory body. Due to the increasing demand of broadcast services, broadcasting companies need to deliver projects within allocated time, quality and budget. The engineering broadcasting company is a matrix structured organisation which makes use of projects to broaden or increase the company revenue to stay relevant in the market. However, the broadcasting company is faced with the problem of inaccurate project cost estimations which resulted to compromised quality of work (underestimated) or wasteful expenditure and lost opportunities (overestimated). To address the problem, a research was conducted at an engineering broadcasting company. The objective of the research was to identify factors influencing the accuracy of project cost estimation. The researcher conducted open-ended interviews with several employees of the broadcasting company. The research findings were shared with the reader and engineering broadcasting companies experiencing the same problem. This research will help engineering broadcasting companies become fully aware of factors influencing the accuracy of project cost estimation. The research identified both internal and external factors influencing the accuracy of project cost estimation. , M.Phil. (Engineering Management)
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Advancing from absorption costing to activity-based costing : an exploratory study
- Authors: Prinsloo, Daniel Pieter
- Date: 2010-11-09T06:26:33Z
- Subjects: Cost accounting , Cost accounting methodology , Activity-based costing
- Type: Mini-Dissertation
- Identifier: uj:6957 , http://hdl.handle.net/10210/3466
- Description: M.Comm. , Every business owner wants his/her business to grow. With growth comes change and one of the major changes in a business is the cost of the product and/or service the specific business offers to its clients. A lot of managers and small, micro and medium business owners do not know and/or understand the basic principles of costing, the types of costing methods and how to implement and execute a chosen costing method. The first step is for the management of a business or business owner to choose a costing method or methodology applicable to the organisation’s unique situation. Choosing the best or most applicable costing method could therefore have a fundamental impact on goals and objectives, revenue and reflected profits – which, in turn, could attract investment and shareholders, but also increase stakeholder satisfaction. This study explores the various types of expenses found in any organisation and applicable costing methods. It specifically outlines and compares the traditional costing or absorption costing (AC) methodology with activity-based costing (ABC) methodology in a real South African company. This study shows that a small, micro and medium enterprise, will have a better understanding of costing but can also benefit, financially and otherwise, by moving from absorption costing and implementing activity-based costing. This study forms the basis of understanding costing and serves as a platform to enhance the applicable business and its costing.
- Full Text:
- Authors: Prinsloo, Daniel Pieter
- Date: 2010-11-09T06:26:33Z
- Subjects: Cost accounting , Cost accounting methodology , Activity-based costing
- Type: Mini-Dissertation
- Identifier: uj:6957 , http://hdl.handle.net/10210/3466
- Description: M.Comm. , Every business owner wants his/her business to grow. With growth comes change and one of the major changes in a business is the cost of the product and/or service the specific business offers to its clients. A lot of managers and small, micro and medium business owners do not know and/or understand the basic principles of costing, the types of costing methods and how to implement and execute a chosen costing method. The first step is for the management of a business or business owner to choose a costing method or methodology applicable to the organisation’s unique situation. Choosing the best or most applicable costing method could therefore have a fundamental impact on goals and objectives, revenue and reflected profits – which, in turn, could attract investment and shareholders, but also increase stakeholder satisfaction. This study explores the various types of expenses found in any organisation and applicable costing methods. It specifically outlines and compares the traditional costing or absorption costing (AC) methodology with activity-based costing (ABC) methodology in a real South African company. This study shows that a small, micro and medium enterprise, will have a better understanding of costing but can also benefit, financially and otherwise, by moving from absorption costing and implementing activity-based costing. This study forms the basis of understanding costing and serves as a platform to enhance the applicable business and its costing.
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