Integrated ABC-EVA system as a management tool: a case study
This paper analyses the implementation and the use of the Integrated ABC-EVA System as an engineering management tool, that identify activities which are economic value added creators and so contribute to stockholders’ wealth. The motivations to rate indirect and capital costs are presented. Pre-implementation and implementation steps are illustrated using data from an implementation of the system at a mill services multinational company. The impact of the increased reliability of cost information on the company’s decision-making, potential long-term business performance, and expected shareholder wealth creation is discussed.