Definitions for "Activity-Based Management"
Using an activity-based costing system to improve the operations of an organization
A system of management that seeks to optimise the value added activities performed by the enterprise while at the same time minimising or eliminating the non-value added activities, resulting in overall improvements in the effectiveness and the efficiency of the enterprise in serving its customers.
An approach to the management of activities within processes as the route to continuously improve both the benefit received by customers and the efficiency with which the service or product is provided. Causes of activities are identified, measured, and used along with other activity information for performance evaluation; emphasis is on the reduction or elimination of non-value-adding activities. Activity-based management draws on activity-based costing data as a major source for information.