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1 Cost Drivers https://store.theartofservice.com/the-cost-drivers-toolkit.html

2 COCOMO Intermediate COCOMOs 1 Intermediate COCOMO computes software development effort as function of program size and a set of "cost drivers" that include subjective assessment of product, hardware, personnel and project attributes. This extension considers a set of four "cost drivers",each with a number of subsidiary attributes:- https://store.theartofservice.com/the-cost-drivers-toolkit.html

3 COCOMO Detailed COCOMO 1 In detailed COCOMO, the effort is calculated as function of program size and a set of cost drivers given according to each phase of software life cycle. https://store.theartofservice.com/the-cost-drivers-toolkit.html

4 Customer loyalty - The service quality model 1 This calculation is hindered by the difficulty in allocating costs to individual relationships and the ambiguity regarding relationship cost drivers. https://store.theartofservice.com/the-cost-drivers-toolkit.html

5 Speech analytics - Business value 1 Used in combination with other workforce optimization suite components like quality monitoring and agent scorecards, Speech analytics can pinpoint cost drivers, trends, and opportunities, identify strengths and weaknesses with processes and products, and help understand how the marketplace perceives offerings. https://store.theartofservice.com/the-cost-drivers-toolkit.html

6 Strategic information system - Porter’s competitive advantage 1 Cost position is determined by the cumulative cost of performing all value activities._To sustain cost advantage, Porter gives a number of cost drivers which must be understood in detail because the sustainability of cost advantage in an activity depends on the cost drivers of that activity https://store.theartofservice.com/the-cost-drivers-toolkit.html

7 Strategic information system - Porter’s competitive advantage 1 Some of the cost drivers which must be analyzed, understood, and controlled are: https://store.theartofservice.com/the-cost-drivers-toolkit.html

8 Strategic information system - Porter’s competitive advantage 1 Care must be taken in the evaluation and perception of cost drivers because there are pitfalls if the thinking is incremental and indirect activities are ignored. Even though the manufacturing activities, for example, are obvious candidates for analyses, they should not have exclusive focus. Linkages must be exploited and cross-subsidies avoided. https://store.theartofservice.com/the-cost-drivers-toolkit.html

9 Strategic information system - Porter’s competitive advantage 1 * Identify the cost drivers of each value activity and see how they interact. https://store.theartofservice.com/the-cost-drivers-toolkit.html

10 Strategic information system - Porter’s competitive advantage 1 * Develop a strategy to lower relative cost position through controlling cost drivers or reconfiguring the value chain. https://store.theartofservice.com/the-cost-drivers-toolkit.html

11 Strategic information system - Differentiation advantage 1 The cost of differentiation can be turned to advantage if the less costly sources are exploited and the cost drivers are controlled https://store.theartofservice.com/the-cost-drivers-toolkit.html

12 COCOMO 1 COCOMO consists of a hierarchy of three increasingly detailed and accurate forms. The first level, Basic COCOMO is good for quick, early, rough order of magnitude estimates of software costs, but its accuracy is limited due to its lack of factors to account for difference in project attributes (Cost Drivers). Intermediate COCOMO takes these Cost Drivers into account and Detailed COCOMO additionally accounts for the influence of individual project phases. https://store.theartofservice.com/the-cost-drivers-toolkit.html

13 COCOMO - Intermediate COCOMOs 1 Intermediate COCOMO computes software development effort as function of program size and a set of cost drivers that include subjective assessment of product, hardware, personnel and project attributes. This extension considers a set of four cost drivers,each with a number of subsidiary attributes:- https://store.theartofservice.com/the-cost-drivers-toolkit.html

14 Risk Management Information Systems - Average RMIS costs and RMIS market drivers 1 TPAs commonly include one or two RMIS access IDs within their claims management pricing to encourage both the client's broker and the client to use their claim look-up product. Normally, beyond the first two access IDs, the pricing follows the same per-user range of the insurance companies. The cost drivers of RMIS include: https://store.theartofservice.com/the-cost-drivers-toolkit.html

15 IT cost transparency 1 Costs, budgets, performance metrics and changes to data points are tracked over time to identify trends and the impact of changes to underlying cost drivers in order to help managers address the key drivers in escalating IT costs and improve planning. https://store.theartofservice.com/the-cost-drivers-toolkit.html

16 IT cost transparency - Capabilities 1 * Custom reporting and analysis of unit cost drivers, including CIO dashboards https://store.theartofservice.com/the-cost-drivers-toolkit.html

17 Activity-based costing 1 'CIMA (Chartered Institute of Management Accountants)' defines ABC as an approach to the costing and monitoring of activities which involves tracing resource consumption and costing final outputs. Resources are assigned to activities, and activities to cost objects based on consumption estimates. The latter utilize cost drivers to attach activity costs to outputs. https://store.theartofservice.com/the-cost-drivers-toolkit.html

18 Activity-based costing - Alternatives 1 Identifying cost drivers in ABC is described as somewhat equivalent to identifying bottlenecks in TOC https://store.theartofservice.com/the-cost-drivers-toolkit.html

19 Activity-based costing - Methodology 1 The split of cost helps to identify cost drivers, if achieved https://store.theartofservice.com/the-cost-drivers-toolkit.html

20 Vendor rating - Benefits and Drawbacks 1 Supplier evaluation can help customers and suppliers identify and remove hidden cost drivers in the supply chain https://store.theartofservice.com/the-cost-drivers-toolkit.html

21 Relocation services - Addressing relocation programme cost drivers 1 Any strategic assessment of a corporate relocation policy’s cost drivers begins near the top with a self-recognition of how the company financially accounts for all relocation costs (‘real’), and where those costs are allotted. Applied tactically, a cost recognition function assembles all information on the cost of a transfer, in one place, for case-by-case review and approval. https://store.theartofservice.com/the-cost-drivers-toolkit.html

22 Relocation services - Addressing relocation programme cost drivers 1 The employer’s case-by-case recognition of relocation costs means understanding the total cost of any given global assignment before it is originated. Then the finance and HR departments must track and report actual costs to budgets. This represents the smallest category of relocation cost drivers, but the way this ‘inexpensive’ work is carried out can reverberate, multiplying the size of the other, much larger, cost drivers. https://store.theartofservice.com/the-cost-drivers-toolkit.html

23 Health care in the United States - Overall costs 1 In March 2010, Massachusetts released a report on the cost drivers which it called unique in the nation.[http://www.mass.gov/dhcfp/costtre nds Health Care Cost Trends] https://store.theartofservice.com/the-cost-drivers-toolkit.html

24 Strategic planning software 1 Examples include Stella and iThinkhttp://www.scientificsoftware- solutions.com/pages.php?pageid=25 based upon Peter Senge's book, The Fifth Discipline, BCG Matrix for Brand Portfolio Analysishttp://www.windows8downloads.com/win8- bcg-matrix-for-brand-portfolio-analysis-udwwqypf/ Net Promoter Score software,http://www.netpromoter.com/solutions/solutio ns-overview/software/ Management Software Associates' Competitive Strategy (which modeled strategic cost drivers such as learning curves, impact of scale, impact of complexity, economies of scope and value), Portfolio Analysis and New Product Modeling using viral models. https://store.theartofservice.com/the-cost-drivers-toolkit.html

25 Private banking - Overview 1 For private banking services clients pay either based on the number of transactions, the annual portfolio performance or a flat-fee, usually calculated as a yearly percentage of the total investment amount.[http://www.myprivatebanking.com /article/advice-cut-your-costs-of-wealth- management-part-2 Understanding Cost Drivers and Pricing Models in Wealth Management, MyPrivateBanking Research, June 15, 2009] https://store.theartofservice.com/the-cost-drivers-toolkit.html

26 Cost driver 1 Examples: In marketing, cost drivers are Number of advertisements, Number of sales personnel etc. In Customer service, cost drivers are Number of service calls attended, number of staff in service department, number of warranties handled, Hours spent on servicing etc... https://store.theartofservice.com/the-cost-drivers-toolkit.html

27 Cost driver 1 Cost drivers are the structural determinants of the cost of an activity, reflecting any linkages or interrelationships that affect it (M. Porter). Therefore we could assume that the cost drivers determine the cost behavior within the activities, reflecting the links that these have with other activities and relationships that affect them. https://store.theartofservice.com/the-cost-drivers-toolkit.html

28 Cost driver 1 Activity Based Costing is based on the belief that activities cause costs and therefore a link should be established between activities and product. The cost drivers thus are the link between the activities and the cost. https://store.theartofservice.com/the-cost-drivers-toolkit.html

29 Cost driver 1 Generally, the cost driver for short term indirect variable costs may be the volume of output/activity; but for long term indirect variable costs, the cost drivers will not be related to volume of output/activity. https://store.theartofservice.com/the-cost-drivers-toolkit.html

30 Cost driver 1 Structural cost drivers that are derived from the business strategic choices about its underlying economic structure such as scale and scope of operations, complexity of products, use of technology, etc., and https://store.theartofservice.com/the-cost-drivers-toolkit.html

31 Cost driver 1 Executional cost drivers that are derived from the execution of the business activities such as capacity utilization, plant layout, work-force involvement, etc. https://store.theartofservice.com/the-cost-drivers-toolkit.html

32 Cost driver 1 To carry out a value chain analysis, ABC is a necessary tool. To carry out ABC, it is necessary that cost drivers are established for different cost pools. https://store.theartofservice.com/the-cost-drivers-toolkit.html

33 Cost to serve 1 The product and customer profiles are often illustrated using a Pareto analysis curve which highlights those that contribute most to the company's profit and those that erode it.Unlike Activity Based Costing (ABC), Cost to Serve is not resource-intensive and focuses on aggregate analyses around a blend of cost drivers. https://store.theartofservice.com/the-cost-drivers-toolkit.html

34 Weighted Micro Function Points - Calculation 1 :D = the cost drivers factor supplied by the user input https://store.theartofservice.com/the-cost-drivers-toolkit.html

35 For More Information, Visit: https://store.theartofservice.co m/the-cost-drivers-toolkit.html https://store.theartofservice.co m/the-cost-drivers-toolkit.html The Art of Service https://store.theartofservice.com


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