In the classroom, ABC looks like a great way to manage a company’s resources. But many executives who have tried to implement ABC on a large scale in their organizations have found the approach limiting and frustrating. Why? The employee surveys that companies used to estimate resources required for business activities proved too time-consuming, expensive, and irritating to employees.
This book shows you how to implement time-driven activity-based costing (TDABC), an easier and more powerful way to implement ABC. You can now estimate directly the resource demands imposed by each business transaction, product, or customer. The payoff? You spend less time and money obtaining and maintaining TDABC data—and more time addressing problems that TDABC reveals, such as inefficient processes, unprofitable products and customers, and excess capacity. The authors also show how to use TDABC to link strategic planning to operational budgeting, to enhance the due diligence process for mergers and acquisitions, and to support continuous improvement activities such as lean management and benchmarking.
In presenting their model, the authors define the two questions required to build TDABC:
1) How much does it cost per time unit to supply resource capacity for each business process?
2) How much resource capacity (time) is required to perform work for a company’s many transactions, products, and customers?
The book demonstrates how to develop simple, valid answers to these two questions.
Kaplan and Anderson illustrate the TDABC approach with a wealth of case studies, in diverse settings, based on actual implementations.

lgli/Time-Driven-ABC.pdf

lgrsnf/Time-Driven-ABC.pdf

zlib/Business & Economics/Robert S. Kaplan, Steven R. Anderson/Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits_2169279.pdf

Kaplan, Robert S., Anderson, Steven R.

Harvard Business School ; McGraw-Hill [distributor

Harvard Business School Press

United States, United States of America

Repr, Boston, Mass, 2009

Illustrated, 2007

55995th, PS, 2007

April 4, 2007

0

lg1015432

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In The Classroom, Activity-based Costing (abc) Looks Like A Great Way To Manage A Company's Limited Resources. But Executives Who Have Tried To Implement Abc In Their Organizations On Any Significant Scale Have Often Abandoned The Attempt In The Face Of Rising Costs And Employee Irritation. Time-driven Activity-based Costing Is The Solution To The Problems Associated With Large-scale Abc Implementation. In This Book, Kaplan And Anderson Offer A Revised Model Where Managers Can Estimate The Resource Demands Imposed By Each Transaction, Product, Or Customer, Rather Than Rely On Time-consuming And Costly Employee Surveys. In Their New Model, Kaplan And Anderson Focus On The Two Parameters Managers Need To Estimate: How Much It Costs Per Time Unit To Supply Resources To The Business Activities (the Total Overhead Expenditure Of A Department Divided By The Total Number Of Minutes Of Employee Time Available) And How Much Time It Takes To Carry Out One Unit Of Each Kind Of Activity (as Estimated Or Observed By The Manager). Rather Than Endlessly Updating And Maintaining Abc Data, This Book With Allow Managers To Spend Their Time Addressing The Deficiencies The Model Reveals: Inefficient Processes, Unprofitable Products And Customers, And Excess Capacity. Kaplan And Anderson Lead The Discussion Of Time-driven Abc In The First Seven Chapters, Followed By Individual Cases Studies Of Actual Implementations By Acorn Consultants In Diverse Settings. Part I The Fundamentals Of Time-driven Activity-based Costing. 1. Time-driven Abc: Introduction -- 2. Estimating Process Time: The Role For Time Equations -- 3. Capacity Cost Rates: The Practical Issues -- 4. Implementing Time-driven Abc Models: Launching A Project -- 5. What-if Analysis And Activity-based Budgeting: Forecasting Future Demands -- 6. Fast Track Profit Model: Creating The New M & A Process -- 7. Enhancing Business Process Improvements: Applications For Time-driven Abc -- Part Ii Time-driven Activity-based Costing In Action. 8. Kemps Llc: Handling Product, Distribution, And Customer Variety -- 9. Sanac Chemicals: Time Equations To Capture Complexity In Logistics Processes -- 10. Lowe's Home Improvement: Applying Tdabc To High Volume Transactions -- 11. Charles Schwab: Using Tdabc To Accomplish A Profit Turnaround -- 12. Atb Financial: Guiding Profitable Growth -- 13. Global Insurance Company Private Client Group: Optimizing Staffing In The Insurance Industry -- 14. Jackson State University: Making A Business Out Of Education -- Appendix A: Transforming Unprofitable Customers -- Appendix B: Frequently Asked Questions. Robert S. Kaplan, Steven R. Anderson. Includes Bibliographical References And Index.

Preface......Page 6
1. The Evolution of Time-Driven Activity-Based Costing: Introduction 3......Page 13
2. Estimating Process Times: The Role of Time Equations 23......Page 27
3. Capacity Cost Rates: The Practical Issues 41......Page 41
4. Implementing Time-Driven ABC Models: Launching a Project 67......Page 58
5. What-If Analysis and Activity-Based Budgeting: Forecasting Resource Demands 85......Page 73
6. Fast-Track Profit Model: Creating the New Due-Diligence Process for Mergers and Acquisitions 107......Page 90
7. Enhancing Business Process Improvements: New Applications for Time-Driven ABC 123......Page 103
8. Kemps LLC: Handling Product, Distribution, and Customer Variety 151......Page 126
9. Sanac Logistics: Time Equations to Capture Complexity in Logistics Processes 165......Page 135
10. Compton Financial: Using Time-Driven ABC to Accomplish a Profit Turnaround 179......Page 146
11. ATB Financial: Guiding Profitable Growth 197......Page 160
12. Citigroup Technology Infrastructure Division: Financial Strategies for Managing IT as a Business......Page 170
13. Global Insurance Company Private Client Group: Forecasting Key Employee Staffing Levels 219......Page 178
14. Jackson State University: Introducing Business Concepts into Education 231......Page 188
Appendix A: Transforming Unprofitable Customers......Page 198
Appendix B.• Frequently Asked Questions......Page 202
Index......Page 207
About the Authors......Page 219

2013-09-09