What is planning based on activities?

Equipment -based planning (ABP) is a business planning strategy that focuses on identifying the types of activities that are needed to create a desired level of goods and services, and attention is also paid to the type and amount of resources needed to engage in these activities. Considered part of a larger process known as the cost of establishing an activity (ABC), focusing on ABP to determine whether resource expenditure is involved in these activities in the best interest of the company. In addition, the nature of every activity is also carefully evaluated to ensure that sources are actually used for the best effect.

with planning based on activities is to compare activities that the company carries out with the amount of product that must be created to meet consumers' requirements. Activity is usually used to identify such problems as the arrangement of the production floor, specific tasks associated with the operation of each machine and how to ZBIt moves in the process from one part of the floor to another, which eventually leads to the finished product. The aim of planning activities is to ensure this production process so that all resources devoted to business efforts are used in the most effective way.

By using the concept of planning based on activities, business owners will look for ways to improve the production process so that the production of goods and services is spent by the smallest amount of resources while using sufficient sources to produce high quality products. To this end, this may mean regrouping the production floor, so in the process from one machine to another is less time of lost moving goods. Depending on how it affects production, this may include the addition or reduction of the number of employees working on these machines. The aim is to evaluate every action of the non -year that takes place in the production processU and minimizes the waste of sources, so the average cost of the unit is maintained as low as possible.

6 At the same time, planning based on activities allows you to gain the greatest benefit of the use of work and other resources, which means that more profit is obtained from each unit sold. With the right balance between costs and profits, the company is likely to remain in operation for many for the next years.