ABC, ABM, and the Volkswagen saga

The Canadian operations of Volkswagen have been using activity-based costing (ABC) for the last 5 years, while persevering through management changes, company reorganizations, upsizing, downsizing, rightsizing, project leader changes and an impending sale. Currently, the Canadian operations use ABC...

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Bibliographic Details
Published in:CMA magazine 1996-05, Vol.70 (4), p.30
Main Author: Gurowka, Jim
Format: Magazinearticle
Language:English
Subjects:
Activity based costing
Automobile industry
Business process reengineering
Case studies
Cost control
Cost management
Decision making
Employees
Engineering
Management
Management decisions
Management styles
Manufacturing
Meetings
Ownership changes
Pilot projects
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Summary:The Canadian operations of Volkswagen have been using activity-based costing (ABC) for the last 5 years, while persevering through management changes, company reorganizations, upsizing, downsizing, rightsizing, project leader changes and an impending sale. Currently, the Canadian operations use ABC information to move from activity-based costing to activity-based management. It is using the information any way it can to help the decision-making process. The ABC system is used extensively in Volkswagen's process-improvement work. Volkswagen's experience has shown that the road to implementing ABM is long and hard. It is full of many ups and downs and requires a strong, dedicated leadership team to drive the project forward.
ISSN:1926-4550