Book Reviews

An ABC Manager's Primer

By Gary Cokins, Alan Stratton, and Jack Helbling

Reviewed by Steve Buchwald, CIRM

I decided to read this book on ABC because I am always involved in ABC implementations and wanted to see if I could learn a method for demonstrating the ABC concepts in such a simple way that it could be grasped immediately by top management. You see, most ABC books are extremely cerebral and detail oriented. However, this book is different. I am happy to report that this book comes closer than any I have read previously in presenting ABC in a top level enough detail that the executive can grasp it but no so watered down that it is meaningless to use for conversation purposes.

This primer was the result of a research grant. It was developed and supported within the Cost Management System Program of the Consortium for Advanced Manufacturing-International (CAM-I). I know that sounds like academia hocus-pocus, but it really isn't. It was a project supported and encouraged by the Institute of Management Accountants as well as sponsor companies recognizing the need for continual improvement throughout their organizations. I believe that the material presented in this book proves that synergies can be developed when industry, academia, and government combine efforts to improve industrial productivity and success.

This book presents the power of activity analysis couched in an approach copyrighted in 1992 by Cost Technologies, a Peter Turney formed company. That approach is referred to as the ABC cross and is shown below. Once you understand this cross the mystique of ABC will be eliminated. Remember ABC is only data. The data must be used effectively or the whole project will be a waste. This primer will help you to understand the cross, how to communicate the cross to others, how to gather the data, and most importantly how to effecitvely use the data so the project will not be a waste of time. However, the primer is only a tool. Don't think it is the vehicle.

I admit though that I may have a biased opinion since I am a true believer in the power of activity analysis. Therefore, don't take my opinion without doing your own research. Pick up a copy of the primer and read it. After you read this primer you will then be ready to read another good book on the ABC subject, Common Cents, a book I previously reviewed in this column. Then let me know what you think of the ABC subject and whether these books helped clarify it for you.

I invite you to share your comments with me. You can contact me at casperb@earthlink.net. Until then let me say good reading.