Activity based management

1. Activity-Based Management at
W.S. Industries

2. Company Introduction
 W.S. Industries is manufacturing company
established in 1961 at Chennai, India
 It was co-founded by N.S Sethuramon
(Joint managing director) & V. Srinivasan
 Company is formed via technology
licensing agreement with Westinghouse
 Company manufacture power equipment
 First company to receive the ISO 9001
certification

3. Problems
 Growing competition
 More manufactures have entered
the sector
 Power equipment industry had
matured enough
 Difficult to satisfy customer needs
 Globalization
 Increasing market pressure forced
firms to hold prices constant

4. Outcomes of problems
 Following traditional method company is
unable to compete in the markets
 Unable to satisfy the customer needs
 Continuously decreasing the profit
margins
 Restricted to compete in international
markets
 Globalization impacts are going worse
for the company

5. Solutions

6. ABM (Activity Based
Management)

7. Cont…
 Company made a ABM task force for
smooth flow of production
 A N Raman was hired as a outside
consultant to monitor the ABM activity
 This result more production and
improved customer satisfaction
 On time delivery of services and good
quality products

8. Outcomes from the case
 Efficiency improved by
implementing CIP
 Company grew quickly by
employing “acquire and build”
technology strategy
 International tie ups with global
technology providers
 Became a one-stop-shop for all the
products

9. Learning's from the case
 ABC- better than traditional
 CIP with benefits to employees gives
better results
 If there is a lot of competition, playing on
price factor it is better to start exporting
products

10. Suggestions/Application
 All manufacturing industries can use
ABM
 JIT inventory
 Remove manual – go automated
 SBU for Insulator business as 60 % of
revenue came from this

11. THANK YOU