time driven activity based costing
DESCRIPTION
A short presentation I did in simple words, aimed at explaining time driven activity based costing and how it fits in a performance management framework to a new audienceTRANSCRIPT
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April 12, 2023© by Numius nv
Slide 1
Capacity driven costing
better performance start with operational insight
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April 12, 2023© by Numius nv
Slide 2
Agenda
The strategy-focused organisation Capacity Cost
Why Numius?
Questions
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April 12, 2023© by Numius nv
An Organisation Adds Value
Why does an organisation exist?
Create added value Direct VS indirect contribution Revenue and costs
AIM: insight in indirect contribution (capacity & cost)
Slide 3
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April 12, 2023© by Numius nv
Capacity
Wikipedia: Capability; the ability to perform some task the maximum that can be produced
Limited by constraints Time Physical boundaries (m², m³,…)
Modelling indirect capacity consumption driven by transactions Eg: RKV, Platform Services, Numius consultancy
Slide 4
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April 12, 2023© by Numius nv
Example: this months workload
Slide 5
• Usage: 10 x 5 hours = 50 hours
• Capacity: 100 hours of
• Overcapacity = 50 hours
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April 12, 2023© by Numius nv
Example: Coming 4 Years
2012 2013 2014 20150 h
20 h
40 h
60 h
80 h
100 h
120 h
140 h
160 h
ConsumptionCapacity
13
Slide 6
16 24 28
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April 12, 2023© by Numius nv
Cost of Capacity
All-in cost for 1 minute of resource usage (TCO) Include costs for training, teambuilding, … Include holidays, downtime, illness Hard to predict ex ante = intensive model maintenance?
Slide 7
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April 12, 2023© by Numius nv
Example: Capacity Cost VS Productivity
All-in static cost: €25/min
Slide 8
2011 2012 2013 2014 2015
-1,500 €
-1,000 €
-500 €
0 €
500 €
1,000 €
1,500 €
0%
20%
40%
60%
80%
100%
120%
140%
160%
Cost of overcapacityProductivity
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April 12, 2023© by Numius nv
Business Added Value
1 model allows to Analyze impact of process improvements Analyze activity mix, introduce new activities Attribute costs to customers and products …
Slide 9
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April 12, 2023© by Numius nv
Why Numius? - The PM Cycle
Slide 10
Tomorrow Today
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April 12, 2023© by Numius nv
Why Numius? – IBM Tools
Slide 11
• TM1• Cognos Planning
• Cognos BI• TM1• TM1
• Cognos Planning• SPSS
• Cognos BI• TM1• SPSS
• Openpages/Clarity
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April 12, 2023© by Numius nv
Real Life Example
Slide 12
Facturen ophalen uit centrale inbox
(10 min)start
Factuur uit enveloppe halen
(0,5 min)
Facturatieprogramma opstarten
(1 min)
Bestaat klant in boekhoud-
systeem?(30 sec)
JA
Maak nieuwe klant aan in
boekhoudsysteem (5 min)
NEE
Zijn alle facturen
verwerkt?
stop
JA
NEE
Boek saldo (1 min)
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April 12, 2023© by Numius nv
Summary
Advantages ANY organisation benefits! Analysing the present, planning the future HOT topic at business schools all over the world
Challenges Accuracy VS precision
Slide 13
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April 12, 2023© by Numius nv
Slide 14
Joris Van den BorreSenior consultant
Numius NVGreenhill Campus
Interleuvenlaan 15D3001 Heverlee (Leuven)
Belgium
t: +32 16 20 29 05f: +32 16 22 58 95
m: +32 4XX XX XX XX
[email protected]://be.linkedin.com/in/jvdborre
www.numius.eu
Questions about this document?
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April 12, 2023© by Numius nv
Slide 15