Business
Business
 

Financial Activity Management (FAM)

In order for the workplace to compete successfully, an organization needs accurate information to make good decisions about the critical issues confronting them. FAM is a system that effectively provides that information. It reveals the profitability of customers and products, identifies opportunities for improvement, and encourages actions that meet customers’ needs in a profitable way. With FAM, processes are seen as a chain of activities that, linked together, provide value to customers. FAM collects both financial and non-financial information and plays a key role in helping to drive workplace change.

 

In its simplest terms, FAM is a method that breaks down direct and indirect activities into their actual components and assigns them to a particular product or service. HOLOS’ FAM system creates a clear picture of real costs and makes it possible for an organization to determine strategically, how to best price each product or service. In addition, FAM makes it possible for an organization to measure accurately the costs involved at each stage of a product’s development, the costs of modifying a product, and the cost involved in manufacturing small and large batches of different products.

 

FAM is a tool which:

  • Identifies the activities and processes performed in producing products and offering services.
  • Prepares for change by developing a process view of operations.
  • Shows how resources are used in making/providing products.
  • Provides information for decision-making.

 

FAM is NOT:

  • A new accounting system for finance or payroll
  • A new way to do time studies
  • A solution to a problem
  • A substitute for common sense

Click Below to Translate Website!

Looking for LEAN Implementation Tips?  Subscribe to our FREE "Learning to Lean" Newsletter!

Looking for LEAN Definitions?  

Click below to access our Lean Glossary!

Print Print | Sitemap
© GDC Total Business Solutions