Workshop Partnerplan

1
Time based/driven ABC
28 November 2008 Frank van Vliet
2
Resource
3
What is time driven ABC

• A concept/methodology how to implement ABC
• Idea is that most costs are time based/driven
• Pull costs instead of push costs
• Estimate costs by estimating utilization of
  capacity
• Estimate utilization of capacity by estimating
  time
• Estimating time by Quantity (real) Time
  (normative)
• Easy to understand
• Easy to implement
• Not always possible
• reliable transactional data
• standardized processes/activities

4
Time
Resource
Activities
Resource Driver
2 hrs
Archiving
4 hrs
Phoning
2 hrs
Typing
5
Time
Resource
Activities
Resource Driver
2 hrs
24 files 5 minutes/file
Archiving
4 hrs
60 phone calls 4 minutes/call
Phoning
2 hrs
6 reports 20 minutes/report
Typing
6
Remarks for time driven ABC

• Process focused activities ? repetition
• Volume is easy to measure ? reliable volume data
• Capacity is a topic ? utilization of time
• In principle all sectors are attractive to apply
  time driven ABC

7
Demo

• Logistics
• Hospital
• Airline