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In the December 2020 APM Exam, there was a scenario where a business
1) Produced 2 types of shoes
2) Production process was relatively simple
3) There were many activities that were not value-adding
4) Competition was growing
5) Firm had very poor IT -which was not unifiedThe question was would this organization benefit from ABM
Would a good answer look at both sides? Talk about how they can eliminate waste by ABM and then talk about ABM not needed as the process is simple?
Yes, I think both sides. Their poor IT implies some bother and cost implementing ABC and ABM.
Lots of non-value added activities could be brought under control.
The simple production process might limit the effectiveness of ABM…..is it really needed if production is simple?
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