Caterpillar's Marketing & Product Support Division (MPSD), used activity-based management (ABM), to streamline processes, reduce costs, and save millions of dollars. ABM at Caterpillar included activity-based costing, 6 Sigma, and active modelling of improvements. A 5-step process was used to implement ABM: 1) Step 1: Value Stream Mapping and Time Tasking - each person's work stream was combined into a value stream map. 2) Step 2: ABM Analysis-Process Costing - A cost rate for each activity to m...

BPIR Categories

5.5.5 Implement systems for managing production/delivery
14.3.3 Implement an org-wide continuous improvemnt program

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