Welcome to Our Demo ABIS~PRO

Activity Based Information System

Pro~Active Solutech(India) Pvt Ltd

Cost Assignment View - A Snapshot

Resources
Resource Cost Assignment
Resource Drivers Performance Measures

What things cost

Process view Cost Drivers

Activities
Activity Cost Assignment

Activity Drivers

Cost Objects Why things have cost Better Decision Making

Ref: Glossary of Activity Based Management, edited by Norm Raffish and Peter B.B. Turney,(Arlington: CAM-I 1991)

DISCRETE MANUFACTURING MODEL

(DIAMOND JEWELLRY MAKING) MANUFACTURING FACTOR INPUTS Labour Supplies Machinery Other Resources BRUTING CUTTING DEPARTMENT CLEAVING INTERMEDIATE PRODUCTS Stone Pieces Removed Stones Rounded Up Stones Cut
Jewellery Specific Mix

Customer/ Customer Group

POLISHING
GRADING Indirect Cost (Overhead) JEWELERY MAKING

Stones Polished
Stones Graded Jewellery Made Other Products
Customer Requirment

etc
Support & Admin Departments

Plant Maintenance

Services

Utilities

Finance Systems

ABC Linkage to ABM

Activity-Based Costing

Operational ABM
Doing Things Right

Strategic ABM
Doing the Right Things

Integrating ABC/M & Scorecards

Strategy / Goals
Process Quality Consumer Satisfaction People Commitment Finance Cost

Critical Success Factors (CSFs)

Functional View Process view

Organization Performance Measure

Divisional Process Level Performance Measure

Resources

Strategy/Goals

Process Quality

People Commitment

Consumer Satisfaction

Finance Cost

Cost Drivers

Activities

Critical Success Factor (CSFs)

Organization Performance Measure

Division or Process Level Perfo

Cost Objects

Positioning ABC/ABM Model

ABC/ABMs future is in permanent, repeatable and reliable production systems
100% accurate
General Ledger Journal Account balances(S)

Standard report
Calculations, maintenance and reconciliation

Data warehouse

ABC Software
ABC calculation engine

Activity-based report generation

Ad hoc personalized decision support reporting
Standard tools: - Spreadsheets - Modeling - Graphics - Simulation - EIS Actionable information: Dynamic Flexible Fact-based -Process-based

Historical and forecasted

Work activity mix and attributes

TransactionActivity drivers ( inter mediates based & estimates and finals)

Activities Driver quantities Unitized activity cost rates Multidimensional cost objects

Process metrics data

Data inputs

Data outputs

Slides from ABC Technologies

Drucker on ABC
Article on the information Executives truly need

ABC integrates what were once several activities

Value analysis Process analysis Quality management costing

Demo of the Package

Pro~Active Solutech(India) Pvt Ltd

ABIS~PRO Aids

Activity based costing (ABC)

Activity based management(ABM)

Shifts in concepts
From cost of manufacture to cost of total process From cost accounting to yield control From costing -led-pricing to pricing-ledcosting

Industry strengths
Nylon Tyre cord - SRF Limited Garments Arvind Brands Blore Steel industry Mukand Steel Kirloskar Abrasives Grindwell Norton Saint Gobain Electronics BPL Limited Auto Electricals / components TVS Group UCAL Fuel

Industry strengths
Construction Shriram Properties Catering Velankani group Batteries Reem Batteries - Muscat Paints Sadolin Paints Muscat Dairy AL Rawabi dairy Dubai Financial Services The Associates Financial services STFC Mumbai

Integration with leading ERPs

Client name
BPL Palakkad Leitner Shriram SRF Ltd Mukand Steel Grindwell Norton

ERP
Oracle 11i SAP 6.0 Oracle 11i JD Edwards ITM

Sundaram Industries Ltd Marshalls

SRF Dubai
AL Rawabi Dubai

Orion (A 3i ERP solution)

Great Plains

ABC - A Three Tier Framework

Translation of General ledger expenses to Work activities through drivers Linking activity costs to business processes or cost objects
Cost Element Groups Cost Element GL Account codes Attach Drivers Drivers Activities Cost Objects Bill of Activities

Product/Customer

Multistage Cost Allocation To Activities

GL

Salaries
Account codes

Fuel

Admin Overheads

Machinery Maintenance

Admin
Departments

Purchase

Production

Marketing

A1

A2

An

B1

B2

Bn

D1

D2

Dn

S1

S2

Sn

Activities

Multistage Cost Allocation To Activities

INDIRECT ACTIVITIES HR Accounts Admin Purchase Other Indirect Activities

INDIRECT ACTIVITIES

QA

Power Generation

Boiler

A/C

Other Indirect Activities

TOTAL COST OF PRIMARY PRODUCT ACTIVITIES

Wire Drawing

Extrusion Press

Flux Grinding

Slug Preparation

Wire Coating

Unit Cost of Primary Product Activities Unit Cost of Wire Drawing Unit Cost of Extrusion Press
UNIT COST OF PRIMARY PRODUCT ACTIVITIES

Unit Cost of Flux Grinding Unit cost of Slug Preparation Unit Cost Of Wire Coating

Cost Allocation To Products & Customers

PRODUCTION COST
Marketing & Distribution cost

Unit Cost of Wire Drawing

SMAW Products

Marketing Cost

Domestic

Unit cost of Extrusion Press

Unit Cost of Flux Grinding

GTAW Products

Final Product Costs

Transpor tation Cost

Export

SAW Products Unit cost of Slug Prepariaton Cutting Equipment Unit cost of Wire Coating Selling and Distribution Cost
Inter Company

Where do we go

Preliminary as - is , to-be, gaps study Proposal sign off Configuring Production Implementation and training

Pro~Active Solutech(India) Pvt Ltd

Next

ABIS~PRO

Thank you

Pro~Active Solutech(India) Pvt Ltd

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