AB Value™Method

AB Value™ is implemented using a bottom-up approach that leverages empirical information collected from four key sources of performance data: human resource, time, cost and equipment utilization.
Rather than imposing a pre-existing model of the entreprise, AB Value™ provides basic building blocks to model units of work, and builds a complete cost model of the business process. The cost model can then be validated by comparing it to actual budgets and financial models. Once the model is validated, it provides a solid foundation anchored in the day-to-day reality of the business. It can then be used for simulations and what-if analysis that make valid predictions for the existing operation. Using AB Value in this manner has then shown to yield performance improvements of over 25% in three to six month

1 - Diagnostics and Performance Analysis

The AB Value consultants realize on-site investigation to develop a better understanding of activities. This first phase of an operational analysis includes interviews with operators and operation managers; AB Value consultants examine personnel head counts, processes, activities provided, resources allocations and material flows.

2 - Modeling, Simulation and Performance Engineering

Based on their diagnosis and performance analysis, AB Value consultants model the existing business, with the purpose of improving the operations results. Based on the model of the existing process, and client´s objectives, the AB Value consultants conduct what-if studies. The what-if scenarios are examined and compared to the existing operation to determine the relative gains for each scenario. These modeling activities are done together with the AB Value consultants and the managers of the enterprise.

3 -  Performance Management

Once an enterprise process model has been defined, an implementation plan is developed. This plan covers all tasks to be modeled, reviewed and reported on. AB Value also provides the managers in charge of the monitoring, with dashboards and reports, that enable them to lead their teams in continuous improvement efforts.
The target of performance management is to optimize and ensure the continuous improvement of the operation through daily review of process indicators. In order to manage the operations, AB Value enables daily comparison between actual results and targeted performance. AB Value enables the enterprise to quickly react to volume and mix changes and to adjust the process as needed.