【正文】 DISPATCH PARTS $ ABC ACTIVITY 432 ONSITE FIX $ Total Process Cost = $ ...... Costed Process Process: TOTAL COST Order Fulfillment Process: $4,437,716 Activities In Process: Cost Approve credits Collecting accounts Freight delivery cost Enter credit notes Enter customer orders Freight pallet miles cost Pick loose cases Picking pallets Pay promotional claims Shipping paperwork Driver Credits Orders Orders Credits Orders Pallet X Miles Loose Cases Pallets Claims Orders 170,123 499,689 167,546 154,539 661,389 1,035,546 843,869 305,769 395,342 203,903 ...... Activity Analysis ? The first step in an ABC analysis is to understand what activities are performed in the anization. ? Activity Survey Questionnaire (ASQ) facilitates simple and efficient collection of activity data throughout the anization, prepares the data for import into analysis tools and produces draft activity and process costs. ? Let’s see ASQ in action ...... Pharmacy Best Practice Analysis Unit Cost Comparison Activity Iowa Los Angeles New York Tempe Michigan Receive orders Order setup Checking RXs File hard copy RXs scan Process inventory Bag ship orders ...... Pr o d u ct / M ar ket M atr i xM a r k e t s e g m e n t sPh a r m a C oW h o l e s a l e P r o f e s s i o n a l C o m m e r c i a l $ t h o u sa n d sB u Y e r s R e t a i lA l l O t h e r R e t a i lW h o l e s a l e H o s p i t a l C l i n i c s E x p o r t O t h e r T o t a l sA d u l t 4 , 8 1 4 3 2 , 9 0 1 1 8 , 3 6 3 5 6 , 0 7 7 A n a l g e s i a 1 , 4 6 4 1 6 , 3 3 5 8 , 5 7 2 2 6 , 3 7 1 30% 50% 47% 47%C h i l d r e n 39。 Malcolm Baldridge winner, Wallace Co’ bankrupt ? Fortune 500 panies will face a $ Billion knowledge deficit next year ? By how much can profit be increased by changing your product/market mix to focus on your most profitable products ...... Performance Architecture ? A bination of a business logic methodology, relevant software and systems capability. The links between the tools are as important as the tools themselves. ...... Performance Architecture to Drive Value Systems Enabled Stakeholder Need/Values ? Customers ? Shareholders ? Employees ? etc. Process Management Human Performance IN OUT Performance Measures Scorecard Organization Design and Compensation Best Practices Activity Based Management TIME QUALITY FINANCIAL QUANTITY Strategic Plan ...... Understand the Organization ...... ValueBased Management ? “ VBM is a holistic management approach that enpasses redefined goals, redesigned anizational structures and systems, rejuvenated strategic and operational processes, and even revamped human resources practices”. ? “This holistic practice of VBM is in sharp contrast to the financedriven appearance that VBM has taken on in the past …” INSEAD Working Paper, Are you (Really) Managing for Value? ...... Value Creation is an Operational Issue! Linked to Seven Value Drivers: ? Sales growth rate ? Operating profit margin ? Cash ine tax rate ? Working capital ? Fixed capital ? Cost of capital (WACC) ? Growth duration period ? Creating shareholder value requires intense focus on: 216。2023/3/6 Cost and Performance Management: Creating Value with Measures Presented by Focused Management Inc. Facilitating Performance Improvement Through Better Use Of Information And The Application Of Decision Support Tools ...... At Issue ? Every anization needs to measure and manage performance to satisfy the demands of stakeholders ? Today’s measurement and management methods are much better than in the past but need to be connected together ? The speed of change and information age puting and munications leave little margin for errors ? Decision making needs facts ...... The Fish Tank Syndrome If each person described what they saw, would it be the same description? Perspectives vary! – Which is correct? ...... Implications of The Fish Tank Syndrome ? We need a variety of perspectives and with which to obtain a balanced, disciplined and dynamic view of our businesses ? We need to develop a mon / agreed understanding of the business and all of its characteristics ? We need a constantly available set of reference points to which we can return ? We need a living repository in which locate and maintain knowledge ...... Result – What Is At Stake ? Inappropriate measurement systems can be costly experiments 216。 Deli