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Activity-Based Costing (ABC): ABC
helps organizations operate more efficiently
in terms of cost, quality, delivery,
and flexibility. It captures quantified
cost and time data and translates
this into decision information.
ABC:
• measures process and activity
performance,
• determines the cost of business process outputs, and
• identifies opportunities to improve process efficiency and effectiveness.
If an organization concentrates on only one dimension (such as cost) it may weaken other important dimensions (such as quality). We help create a comprehensive ABC system to insure our clients develop a fully integrated view of their processes.
Keya’s unique methodology for conducting the ABC occurs by statistically profiling each activity of the process for volume, time and cost. Most ABC programs consider only the cost value of an activity, and disregard volume and time.
Keya’s approach to ABC client implementation is in the examination of volume, time and cost interactively. The end result is in knowing how volume-impact relates to Received, Processed and On-hand figures for each activity.
The Implementation Plan for process improvement includes a “Continuous Process Improvement “program for the empowerment team to self-administer. This is program that avoids process obsolescence through constant surveillance and positive action, resulting when deficiencies are detected.
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