Why have we chosen ABC systems for mine operational improvement and asset management assignments since 1996?
Because over a period of 35-years with the aid of ABC systems, we have:
1) estimated, turned to account and managed the construction of dozens of open-pit mines and civil infrastructure projects. 2) analysed, estimated, benchmarked and improved mining operations of 30 multi-commodity open-pit mines.
3) integrated ABC in enterprise resource planning (ERP) for real-time analysis and effective management during asset management assignments. "Activity-Based Costing (ABC) has been popular since the 1980s because it prevents cost distortions and provides a process view which traditional cost accounting cannot provide.
"Activity-Based Costing is based on a “flow view” in production theory in that ABC adopts two-staged costing, i.e., resources are assigned to activities and activities are assigned to cost objects. Lean construction comes from recognizing the limitations of current project management and applying “lean production” to the construction industry." (Yong-Woo Kim, Glenn Ballard, 2001, p1)
(Ref. Article: ACTIVITY-BASED COSTING AND ITS APPLICATION TO LEAN CONSTRUCTION: Yong-Woo Kim and Glenn Ballard)