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