Activity-Based Total Quality Management at American Express

5991 WordsNov 16, 201224 Pages
Cost Management Journal of A WARREN GORHAM LAMONT PUBLICATION Vol. 7, No. 1 Spring 1993 Target Costing at Toyota Activity-Based Costing in Cellular Manufacturing Systems Controlling Quality on a Multidimensional Level The Effect of JIT on Management Accounting Activity-Based Total Quality Management at American Express From the Editors / Barry J. Brinker Cost Management Practice / Steven C. Schnoebelen The Factory in Transition / Arun Maira Reprinted with permission from The Journal of Cost Management, Volume 7, Number: 1 c1993 Research Institute of America, Inc., Warren Gorham Lamont Professional Publishing Division, 210 South St., Boston, MA 02111. All rights reserved. Activity-Based Total Quality…show more content…
IPS appears to have made important progress, however. Activity-based TQM The TQM initiative at IPS began by getting all employees involved in continuous improvement efforts. Customer satisfaction, vendor satisfaction, and employee satisfaction were processes that were assessed regularly, and efforts were made to gain a better understanding of the activities and performance measures at IPS. Activity analysis began in the customer service department and telephone operations and quickly became interwoven with concerns about product costing. In particular, senior management wanted to manage growth better by gaining a better understanding of fixed versus variable costs for each product line. Product costing was connected with the quality strategy because both efforts tried to answer the Spring 1993 -- 49 COST MANAGEMENT difficult questions of how and where information workers spent their time. ABC is central to recent efforts to redesign cost accounting systems to account for a wide variety of changes that have occurred in high-technology manufacturing and service firms. These changes require accountants and all other employees to alter their mindsets away from cost accounting toward “cost management.” Cost management emphasizes an active approach to planning and managing an

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