Activity-based management in a small company: A case study

A. Gunasekaran, Ronald McNeil, Daljit Singh

Research output: Contribution to journalArticlepeer-review

17 Scopus citations


This paper deals with the application of activity-based management (ABM) in a small company. The project took place in G.E. Mustill, a company that produces machines for the photo framing industry. This project aims to develop an ABM system for the company which leads to appropriate improvement actions based on a make or buy decision about different parts of the machine, 'Four-head foiler'. Firstly, a theoretical framework for the design of an ABM system is developed. Then, secondly it is used to improve the business performance of four-head foiler manufacturing. The activities required to manufacture this machine are identified and then quantified by their consumption of resources. The factors causing or driving the cost (cost driver) of an activity in question have been identified and used to identify the value-adding and non-value-adding activities. Also, some suggestions are offered to improve the performance of the company using the ABM system.

Original languageEnglish (US)
Pages (from-to)391-399
Number of pages9
JournalProduction Planning and Control
Issue number4
StatePublished - Jun 2000

All Science Journal Classification (ASJC) codes

  • Computer Science Applications
  • Strategy and Management
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering


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