title: Baseline budgeting for continuous improvement.
abstract: This article is designed to introduce the techniques used to convert traditionally maintained department budgets to baseline budgets. This entails identifying key activities, evaluating for value-added, and implementing continuous improvement opportunities. Baseline Budgeting for Continuous Improvement was created as a result of a newly named company president's request to implement zero-based budgeting. The president was frustrated with the mind-set of the organization, namely, "Next year's budget should be 10 to 15 percent more than this year's spending." Zero-based budgeting was not the answer, but combining the principles of activity-based costing and the Just-in-Time philosophy of eliminating waste and continuous improvement did provide a solution to the problem.
authors.affiliation: Quality Management Solutions, Inc., Clearwater, FL, USA.
authors.forename: G L
authors.initials: GL
authors.lastname: Kilty
mesh_terms: D002017:Budgets; D006801:Humans; D007221:Industry / Q000191:economics / Q000458:organization & administration; D008332:Management Quality Circles; D008421:Materials Management, Hospital / Q000191:economics / Q000458:organization & administration; D009936:Organizational Innovation; D017749:Total Quality Management / Q000191:economics*; D014481:United States