ACC 333 Lecture 99: ACC 333 EXAM 2 ARTICLE NOTES
Document Summary
Getting lean and mean at caterpillar with abm (9 pages) Caterpillar utilized activity based management (abm) to cut costs and optimize its marketing & Product support division (mspd) prior to the financial crisis of 2008: abm includes activity based costing (abc), 6 sigma, and active modeling. Caterpillar delivers in goods and services in 2 main categories of business (1) machinery and. Caterpillar success is attributed to a 4 formula: reorga(cid:374)izi(cid:374)g i(cid:374) the 90"s i(cid:374)to produ(cid:272)t fo(cid:272)used (cid:271)usi(cid:374)ess u(cid:374)its (cid:449)ith full tra(cid:374)spare(cid:374)(cid:272)y to their bottom line. These plans allowed caterpillar to become very successful, however it was during the economic downtown that these capabilities were most important to help the company reduce costs through (cid:862)trough plans(cid:863) The company had been using abc in the factories, but decided to apply abc to its mpsd in the office as well. Abm: search and find low or non-value adding activities within the process and eliminate or significantly reduce those costs, for mpsd this meant: