Friday, May 27, 20 22 © by Numius nv Slide 1 Capacity driven costing better performance start with operational insight
Time driven activity based costing
May 25, 2015
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 audience
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April 12, 2023© by Numius nv
Slide 1
Capacity driven costing
better performance start with operational insight
April 12, 2023© by Numius nv
Slide 2
Agenda
The strategy-focused organisation Capacity Cost
Why Numius?
Questions
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
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
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
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
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
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
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
April 12, 2023© by Numius nv
Why Numius? - The PM Cycle
Slide 10
Tomorrow Today
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
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)
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
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?
April 12, 2023© by Numius nv
Slide 15
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