Value Analysis and Activity-Based Management are two disciplines that have developed separately over the years. In spite of this, they have many features in common, as well as some important differences. This presentation outlines the main features and of Activity-Based Management and how it is typically applied and explore ways in which practitioners of the two methodologies might learn from one another.
The author notes that the Acitivity based costing and Value Analysis processes can complement each other. Actiivty Based Management primarily has a cost focus and Value Analysis focues on whether the process is achieving value.Activity Based Costing is a powerful tool that focuses on the management of activities as a route to improve both performance and the value received by customers. Value Analysis is a technique that helps identify and clarify user needs and develop alternative ways to meet those needs. It is the use of Function Analysis that makes Value Analysis unique from other problem solving techniques. Combining Activity Based Costing with Function Analysis significantly improves the chances of a successful outcome with ABC.
Public Works and Government Services Canada has undergone two changes recently. The first is a change of name: from PWGSC to Public Services and Procurement Canada (PSPC). The second is a major change in its office facilities. PSPC wished to adopt an ABW (Activity Based Workplace) model for the design of its new offices. In addition, supported by a latest-generation software, PSPC will operate on a "hoteling" principle, hence by reserving work areas, thus allocating no fixed work area for its employees. This presentation explains how the Functional Performance Specification process was used to define PSPC's planning needs and provide guidance for the design of the new workplace. The speaker will discuss how PSPC staff were actively involved in the construction of their FASTs and how characterization was produced to circumscribe planning and environmental requirements for the new work environment.
More information on Functional Performance Specification, also known as a Benefits Breakdown Structure can be found at http://www.valueanalysis.ca/fps.php