IBM Endicott's Panel Continuous Improvement Program Activity Based Costing / Management

摘要

IBM Endicott's Panel Continuous Improvement Program Activity Based Costing / Management. IBM Endicott manufactures a large volume and wide variety of printed circuit boards. These are important components in the computer products built by IBM and, in recent years, an increasing number of OEM Customers, as well. In the 1990's, IBM, including Endicott, was coming under increasing competitive and cost pressures. It was quite clear that business-as-usual business management techniques would not suffice for continued existence. Something bold and dramatic would be needed. That bold approach is Endicott's continuous improvement program called Activity Based Management (ABM). This paper will describe the situation leading to the need for ABM, how it was implemented, what it is, including its core of Activity Based Costing (ABC), the results, and how it has become our "continuous improvement" program. The reader will be able to ascertain that ABM is not necessarily new concepts, but actually a collection of old techniques, coupled with ABC and bench marking foundations and, most importantly, major management - employee paradigm changes.