Original Date: 01/26/1998
Revision Date: 01/18/2003
Information : Activity Based Costing Efforts
Since 1996, Corpus Christi Army Depot (CCAD) has used Activity Based Costing (ABC) to support process improvements. ABC is being used to support the Depot in its efforts to become certified in the Contractor Performance Certification Program (CP2)/ISO9002. Specifically, ABC analysis has been used to determine what percentage of total Depot costs are used to support quality. The ABC analysis quantified the costs for the CP2 certification criteria.
Costs are collected at 374 different activities within the Depot and rolled up to the six core business processes of CCAD. The ABC support team provides software support and training to all Depot managers. This allows managers to focus on their piece of the Depot and analyze how their decisions affect overall product costs charged to the customers. Although this is not a novel application of ABC, it is a very good use of ABC which has provided the Depot with useful data.
The next step in the program is to migrate into Activity Based Management (ABM). CCAD envisions using ABM in supporting a variety of Depot initiatives such as benchmarking, performance measurement, and process analysis. The first application of ABM will be used to support business process re-engineering efforts.
For more information see the
Point of Contact for this survey.