• Jiejian Minfang - Activity Value Management Reveals Customer Project Service Value

Abstract

Under difficult and competitive market conditions, improving the efficiency of customer project service value and determining how to precisely obtain the cost and profit information of each project are primary concerns for the construction industry. This enables the selection of valuable customer, creation of customer value, and establishment of long-term win–win relationships. This case study describes how activity value management (AVM), a management accounting system, efficiently integrated the causal relationships of management information for Jiejian Minfang (JJMF) and revealed customer project service value by using valuable customer selection mechanisms to develop the longitudinal foundation of JJMF. The findings can helps students to understand and examine AVM for practical application and use the information generated through AVM to accurately distinguish profit- or loss-yielding customers, thus providing the optimal solution for the selection of valuable and profitable customers.

Keywords: Activity Value Management (AVM), Customer Value, Customer Relationship Management